Recently, Live Bitcoin News reported that platforms like PayPal and Venmo were looking to potentially offer bitcoin and cryptocurrency buying, trading, and selling options to customers. New evidence appears to show that these companies are primarily interested in crypto services due to bitcoin’s meteoric rise during the spread of the coronavirus.
PayPal Is Moving Towards a Crypto Future
As we all remember, bitcoin suffered heavily when the virus initially began to expand during the first half of the year. By early March, the currency had lost more than a $1,000 from its more than $10K price in February, but things got worse by the time we reached the halfway point of the month. The currency fell all the way down into the high $3,000 range, meaning that the currency lost more than $7,000 in roughly one month.
The asset eventually recovered and reached the $5,000 range within the span of a few short days, but from there, the asset regained all that it had lost in roughly two months, reaching the high $9,000 point and even striking the $10K range briefly by the time early May had shown itself. The power and resilience of bitcoin had never been more obvious. The asset had lost and regained everything within a 60-day period, and it seemed the world has newfound respect and interest in the leading cryptocurrency by market cap.
Many members of the public now saw bitcoin as the ultimate means of hedging their wealth against inflation and as a possible tool against economic strife. People in the United States, for example, began seeing bitcoin in a whole new light, and even used their stimulus checks to buy bitcoin and add to their portfolios.
This period of up-and-down behavior also appears to have gotten PayPal’s attention. Not wanting to be left out of the loop, PayPal – which has often been a crypto critic and was even one of the first companies to exit the Libra Association – has decided that its customers deserve access to the leading digital asset, and it is now looking to allow the issuance and purchase of digital tokens.
PayPal is allegedly looking to allow customers to purchase BTC and other forms of crypto directly with the PayPal app. The company is potentially looking to compete with companies like Square, which has offered this feature to individuals for some time.
Growth Is Happening Now
Mark Palmer – a BTIG analyst – had this to say about the situation:
While we believe PayPal is a clear beneficiary of the changes in consumer behavior arising from the stay-at-home orders in response to the pandemic, we also think that with the company’s shares trading at 35 times the consensus FY22E adjusted earnings per share, the boost provided by the crisis has been largely reflected in its valuation.