Possibly enormous potential for Bitcoin with a push from PayPal in 2021
I haven't posted for a while, and now when I want to, I wonder what a relevant topic would be now, besides the US presidential election. And what comes to my mind is Bitcoin. If we look at the price of BTC from a technical point of view, it looks like Bitcoin is going to conquer new heights along the way performing countless technical figures. From the technical point of view of an analyst trader, the schedule is simply a “gift”, everything looks like from the textbook.
Aside from just technical matters, look at what is happening in the fundamental area. Most likely it is the last “hottest” news that PayPal will start letting people use cryptocurrency to pay for things online starting from 2021.
Well, it is a huge step forward, don’t you think? Just think about the huge PayPal’s customer base of 350 million using about 25 million online stores daily. Since all things are better to grasp in comparison, one of the largest digital currency exchange Coinbase has only 35 million users.
Why is this so important?
A large part of current Bitcoin users and traders are just speculators. This means that the actual use of BTC is very limited, even without going further into detail how many Bitcoin ATMs there are in the world, how many shops or merchants accept cryptocurrency, and even the Latvian national airline airBaltic accepting Bitcoins to buy airline tickets since 2014.
The PayPal’s announcement is very important since it states that the use of Bitcoin is acknowledged by well-known company who has many years of experience in processing payments. The system who is understandable for many its users. PayPal is an important market participant who finally is going to create a user-friendly environment for cryptocurrency. This could be a very important crucial point for many who up until now don’t want to register is a special exchange to buy cryptocurrency and don’t want to get into detail of how to store and deal with these cryptocurrencies. This whole “ecosystem” intimidates them, and PayPal has a great opportunity to “fix” this once and for all. Besides, there may be more than one corporation who will follow if the regulator will allow them to.
It will now be interesting to keep track of how many new BTC addresses appear since each address is a user, or "wallet," or "account", and how will the number of Bitcoin transactions increase with the entry of PayPal into the industry.
And in general, it's worth keeping track of bitcoin network activities and data. There are various services that offer that.
If we look at the regulators and what they have said, there is a feeling that they are finally accepting the presence digital currencies, having more relax attitude. They are even very keen in encouraging banks to explore this new industry. And the more such news, the clearer that digital currencies are here to stay in one way or another. This is a big leap from the notion that Bitcoin might end at any point if it might be simply banned at some point. Right now, it is becoming more evident that Bitcoin is here to stay, perhaps with more regulations to make it more accessible to all. While many financial institutions view the industry more as a risk than an opportunity, there will also be many banks that will be happy to participate in the “digital currency world”.
The European Central Bank has also begun to look actively towards digital currencies. And even consider the possibility of introducing a digital euro. Christine Lagarde, the current President of the ECB, takes all this seriously.
And how many companies have purchased Bitcoin? Who believe in such an investment? As you can see, the list is not so big, but the amounts are impressive. And you can follow the Bitcoin Treasuries in Publicly Traded Companies this list here if you want.
It is more than clear that the list of public companies that will see the possibility in cryptocurrencies will only get bigger and bigger. It is juts matter of time.
Writing all of the above gives the feeling that Bitcoin is once again determined to climb new heights. Everyone must understand their own opportunities and risk tolerance. It must be understood that this will not be a "one-way" movement, and there certainly will be many painful adjustments. If you also look at cryptocurrencies as a risk investment, you need to understand the "maturity" of the investment.
Are you looking for a short-term profit? Are you ready to keep Bitcoin in the long run? If you look at it as a short-term investment, it can become a great concern to you. Because BTC tends to move very fast and aggressively in both directions.
Much easier it is to keep BTC in a long run, without need to pay attention to all unnecessary “noise”: various irrelevant news, gossips and “prophets”. Instead, spend some time education yourself on BTC, and understanding its enormous potential.
And technical analytics against BTC should not be ignored as well since it fits perfectly with classical technical analysis.