Sending Bitcoin is cheaper and faster than sending a wire transfer, but it’s not mainstream; a 2019 survey conducted on behalf of Blockchain Capital found that only 11% of Americans own Bitcoin.
|Payment Form||Fees||Payment Clearance Time|
|Bank Wire Transfer||$45 Outgoing International||Days to a Week|
|Bitcoin||$4.26||Seconds to Hours|
However, the number of people who own Bitcoin could change very quickly.
And after the 11% run-up we saw following this announcement, it could prove very profitable…
On October 21, PayPal Holdings Inc. (Nasdaq: PYPL) announced that customers can buy, sell, and hold Bitcoin and other cryptos using the company’s online storage wallets. With 346 million active PayPal users, that’s a huge influx of potentially new cryptocurrency users.
To understand the full impact, we talked with Money Morning cryptocurrency expert, David Zeiler.
“As for PayPal, I see it as another of those incremental steps that is slowly bringing crypto to a wider, less tech-savvy audience. While Coinbase has made it much easier for regular folks to buy crypto, it’s still a relatively new company that grew out of the crypto space. In other words, the average guy is still going to be wary of investing any money with a company like Coinbase, even if it is a unicorn.
But PayPal is a familiar, trusted name that’s been around a long time (it was founded in 1998!). So when a company with the reach and reputation of PayPal decides to offer a crypto option, even on a limited basis, it changes the game. People who were ignoring it (crypto) will take a second look now. It will definitely speed acceptance — you can’t get higher crypto adoption without first getting people to accept it as legitimate.”
And the news doesn’t stop there…
Top Crypto News for the Week of October 26
- According to Bloomberg, PayPal is in talks with BitGo, a firm that allows you to securely store Bitcoin, to explore an acquisition. BitGo currently has more than 300 institutional custody customers, over 150 crypto exchanges use BitGo, and it has recorded $325 billion in transactions.
- Paul Tudor Jones bet on the stock market crash of 1987 and walked away with a cool $100 million. He’s making another big bet, but he’s bullish this time. On Bitcoin. Jones told CNBC in an October 22 interview that he views Bitcoin as a bet on early breakthrough technology, like owning shares of Google or Apple before share prices skyrocketed.
- In Bloomberg‘s quarterly Crypto Outlook, the bullish outlooks continue, with the report saying the price of Bitcoin could reach $100,000 by 2025. The report says, “Still in hangover mode from the 2017 rally, we don’t know what specific catalyst might launch Bitcoin to new highs, but demand vs. supply metrics remain price-positive. If the crypto echoes its past gains, with some maturation, about double the time period it took to add a zero to $1,000 could get its price to $100,000 by 2025.”
The overall message here is pretty clear; an industry or sector that starts out on the obscure fringes of the market can eventually become a hot ticket for big names and mainstream adoption.
The first adopters who catch on before the rest of the market stand to take home enormous gains. Click here to learn about one company in just such an industry that could see its value go up by 50 times in just a year’s time.