Why PayPal can start Bitcoin mass adoption
PayPal’s decision to support cryptomorphs was hailed by experts as a watershed for the cryptomorph industry in general
Online payments giant PayPal announced today that its customers will soon be able to buy, sell and spend Bitcoin and other cryptomoedas. In addition to making the price of Crypto Bank skyrocket, it is being hailed as a watershed for the cryptomotic industry in general.
According to Statista, the number of active PayPal user accounts reached 346 million in the second quarter of 2020. Even though the new features are available only to U.S. residents initially, it’s still a significant number of people who will be exposed to the cryptomotic market, many for the first time.
346 million PayPal users will have access to Bitcoin
As the data collected by the Australian digital marketing agency E-Web Marketing show, about 43% of PayPal users are from the U.S., while 87% of the generation of millennials in the U.S. uses PayPal to receive and send money. This means that at the launch, about 150 million people will be able to buy, sell and spend cryptomoedas in the familiar environment of their PayPal wallets.
The number decreases the user base of rival digital payment services. For example, the Cash App, developed by Square, the creator of Twitter, has an average of 30 million active monthly users. The popular Revolut and Robinhood crypto platforms have about 13 million active users each.
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Speaking to Decrypt, Jason Deane, an analyst with Quantum Economics, noted that the PayPal announcement is a milestone for the mass adoption of Bitcoin and other cryptomaps.
„In my opinion, this is an extremely significant move towards cryptomeda adoption that will likely expand Bitcoin’s reach at a widely accelerated level, boost the development of additional services and serve as a solid endorsement of the cryptomeda concept leading to more institutions,“ Deane told Decrypt, adding that „this may very well be the moment considered fundamental when Bitcoin history books are written.
PayPal Closed Circuit Service
However, some analysts have argued that the PayPal system is not a „real“ way to buy and maintain cryptomites. After all, the company said there are no options to move cryptomeda in, out or between PayPal accounts – at least „currently“.
„Currently, PayPal offers this service only to the United States and, from the looks of it, it’s very basic, which means it’s a closed circuit – that is, you can’t withdraw your Bitcoin and use it somewhere else or send your Bitcoin out of PayPal on your system,“ noted Danny Scott, founder and CEO of CoinCorner, based in the UK.
Still, from an industry perspective, the large number of potential new Bitcoin users overshadow PayPal’s initial limitations in terms of positive impact, he added.
„The announcement is still great news because it shows a positive step for the industry and brings even more credibility to Bitcoin and its future,“ said Scott.
This sentiment was also shared by Stephen Palley, a partner in the Anderson Kill law firm in Washington D.C., who specializes in blockchain and cryptomeda related cases.
He tweeted that the PayPal move is „a sign of normalization of the asset class,“ adding that many people „don’t seem to understand the value of brand marketing.
Similarly, Nigel Green, deVere Group’s CEO and a leading cryptomote advocate, called PayPal’s announcement „a major step towards mass adoption of digital currencies.
„Unbelievably, there are still some financial ‚experts‘ who believe that cryptomorphs are not the future of money. The decision by one of the world’s largest payment companies to allow customers to buy, sell and keep Bitcoin is another example that exposes Bitcoin deniers and cryptomime cynics as being on the wrong side of the story,“ Green said.
He also noted that, as things stand today, there is the possibility of a „mini-boom similar to the one in late 2017.
„Prices have not yet reached investor interest – but it’s only a matter of time, as investors won’t want to miss a possible price hike,“ he added.