PayPal shocked the world of finance with what Mike Novogratz called “the shot heard ’round the world on Wall Street” by announcing that it would offer Bitcoin, Ethereum, Litecoin, and Bitcoin Cash to its 346 million active users and eventually accept crypto payments at its 26 million merchants worldwide.
Due to the scarce supply of crypto assets and the payment giant’s massive active userbase, PrimeXBT analyst Kim Chua says that the support could “double” adoption and “bring the capitalization of the cryptocurrency market to $1 trillion and beyond with time.
Here’s why Chua claims this news is so bullish for the four cryptocurrencies listed that are already being rolled out to users this very minute.
PayPal Admits Defeat: Couldn’t Conquer It, Concedes To Offer Crypto Instead
Once upon a time, just a few years ago, the crypto industry was blossoming, and Bitcoin was on the tips of everyone’s tongue. During this time, payment giants and banking behemoths like PayPal, VISA, Mastercard, JP Morgan, and so many more all slammed crypto and put a stop to supporting the emerging asset class and new technology.
PayPal’s former CEO, for example, said Bitcoin was a scam. Banks everywhere either blocked crypto transactions completely or added on cash advance fees that discouraged investing in cryptocurrencies. This sudden defensive stance by companies across the globe was partly responsible for the crypto bubble pop.
But years later, the industry itself kept building and growing, and not even the likes of PayPal and big banks could stop it. Bitcoin is suddenly taking over the world of finance, stealing the safe haven limelight from gold, and outpacing the stock market more than ten times over in 2020.
Cryptocurrency’s unstoppable trajectory has prompted PayPal to take an ‘if you can’t beat ’em, join ’em’ attitude, and is now going to roll out Bitcoin, Litecoin, Ethereum, and Bitcoin Cash to its 346 million users.
Digital Scarcity Plus PayPal 346 Million Users Equals Increased Adoption
PrimeXBT analyst Kim Chua has presented several vital figures highlighting cryptocurrency’s signature digital scarcity and how the PayPal announcement could influence the technology’s adoption in the future.
For one, “PayPal has 346 million active users and 26 million supported merchants,” Chua explains. “According to a recent study by Cambridge University, there are currently only around 101 million unique crypto users globally,” she added.
“Even if you assume that all of the existing 101 million crypto users already have an active PayPal account, PayPal can still bring cryptocurrencies to another 245 million new users.”
The rest, Chua says, is simple mathematics. There are only 21 million BTC, making it so that even if every PayPal user wanted to own one, there would only be 0.06 BTC to go around. But much of that scarce supply is already held tightly or lost forever. Taking Litecoin, for example, at 84 million LTC, there’s only enough for 0.24 LTC per PayPal user.
Why Litecoin Could Shine The Brightest Based On Low Barrier To Entry
Chua expects Litecoin to benefit the most of the bunch, namely due to its low price compared to Bitcoin and the rest of the bunch – something that previously hurt “digital silver.” Its low cost compared to Bitcoin that once made it look weak by comparison, will soon look attractive to newcomers entering crypto for the first time through PayPal.
When PayPal users open the list of coins available to them, Litecoin at $60 per LTC versus $13,000, BTC is a lot more appealing and affordable. Crypto newcomers feel good about owning a full coin rather than a fraction of another. Litecoin is very likely to benefit enormously as a result of mainstream users of the app.
With only 101 million crypto users as Chua cited, and a total crypto market cap at $400 billion, she believes that the “huge influx of new funds has the potential to bring the capitalization of the cryptocurrency market to $1 trillion and beyond with time.”
Trade Bitcoin, Litecoin, and Ethereum Ahead Of The Coming PayPal FOMO With PrimeXBT
Of the four coins listed by PayPal, which early users are able to access starting now, PrimeXBT offers CFDs on Bitcoin, Litecoin, and Ethereum trading, in addition to stock indices, commodities, forex, gold, and more.
If these cryptocurrencies are going to respond to PayPal support and the adoption that follows as Chua expects, then the valuations are soon going to skyrocket, and another crypto bull market will follow.
To get ahead of the trend and beat PayPal FOMO to the punch, PrimeXBT offers short and long positions on Bitcoin, Litecoin, and Ethereum, as well as EOS and Ripple trading, and more than 50 other trading instruments, all under one roof.
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