Don’t miss out on Bitcoin before FOMO sets in
I want to elaborate on PayPal and cryptocurrencies topic a bit more. PayPal sent e-mails to US customers stating that its new cryptocurrency service available to all eligible users in the United States.
And now it will be interesting to follow the journey of PayPal stocks and quarterly reports. Real data reflecting real demand from real PayPal customers. All this combined with PayPal’s announcement on increase in planned limits on crypto purchases. Initially there was a limit of $ 10 000 per week planned, now this limit will be increased to $ 20 000 per week for US customers. Let’s hope that customers won't be intimidated by rather steep commissions, though. The comission for a deal up to $ 24.99 will be $ 0.5., the 2.3% commission on transactions of $ 25-100, the 2% commission on transactions from $ 100.01 - $ 200, the 1.8% commission on transactions of $ 200.01-1000, and a 1.5% commission on transactions over $ 1,000.
Let’s have a look on PayPal reports data, the main indicators:
The next report will be published on February 3, 2021. There we will be able to see the impact of crypto payments on the financial indicators. I think that this should be highlighted in this upcoming report.
Let’s have a look at PayPal chart (ticker symbol “PYPL”):
As you can see, COVID-19 has had a very positive effect on PayPal, jut like for many other e-commerce companies. In this case the price of shares has grown by more than 100%, and if we look in more detail at the daily schedule, then we can see that the price is in the corridor between $ 175 and $ 210.
Now we have to see if the price will be able to break out of this corridor.
Meanwhile the price of Bitcoin continues go upward reaching the $ 16 400 mark. Just couple weeks ago when I mentioned PayPal and BTC (November 2), the price was $ 13 800. And what’s even more fascinating that the FOMO effect has not yet occured. Accoring Google trends, “bitcoin” has not been searched more than usual.
Which suggests that when "retail customers", FOMO traders, and PayPal new customers will finally "connect" - the demand for cryptocurrencies most likely will jump again. Frankly, I am rather surprised by the small number of searches for "ethereum" as well. ETH is the second largest crypt currency, which is also continuing to develop and is proving its place in the world of cryptos. However, I don’t want to go into details about it, at least for now.
So, the trend of cryptocurrencies value going up is also confirmed by JP Morgan, who reports that some investors see Bitcoin as a golden alternative. What is more fascinating that it’s not just millenials drive demand for Bitcoin, but institutional ivestors: family offices and asset managers.
Besides, if we look graphically, placing the price of BTC and gold on one graph, we see that Bitcoin shows better results than gold this year.
Even more outrageous picture emerges when we express the price of gold in bitcoins. The gold price chart now looks dramatic, don’t you think?
And another illustration of BTC price increase in one reddit record. This is a price of the iPhone in bitcoins.
And here emerges the real power of BTC. Bitcoin outperforms everything. Bitcoin is the currency you keep with you without need of the bank. Currency that nobody can take from you, the currency which you conveniently can use when paying with PayPal and most likely with more other ways to come. That’s why I want to continue to hold on BTC and other cryptocurrencies and I don’t see the reason to “fix short-term profit” at the moment. On the contrary, I wonder if I should get some more…