PayPal Now Supports Bitcoin, Here’s Why You Should Mine BTC

October 30, 2020 - Crypto News, Expert Commentary

PayPal Crypto

The financial establishment seems to be in the final stage of grief with Bitcoin.

After years of denial and dismissal, Bitcoin is now gaining unprecedented acceptance. Bitcoin is both a medium of exchange and a store of value, qualities which established companies are appreciating more.

PayPal’s recent announcement that it would begin supporting cryptocurrencies further cements this trend. The company CEO, Dan Schulman, has stated that the move is in anticipation of digital currencies issued by central banks and would “encourage global use of virtual coins.”

One thing is certain about corporations; they place their bottom-line first. 

PayPal is only doing this because it sees the potential of cryptocurrencies moving forward. Bitcoin, being the dominant cryptocurrency, stands to benefit the most from the resulting tailwind.

The money transactions platform has 346 million active accounts and processes billions of dollars in payments every day. Accordingly, PayPal is the biggest money service business to get into crypto to date. 

For now, users will be able to hold crypto but not send directly to other users on PayPal, possibly due to logistical maneuvers. It is only a matter of time before PayPal supports full Bitcoin merchant services fully. PayPal’s mobile payment arm, Venmo, is also fully part of these developments.

Other services that already support Bitcoin are the Jack Dorsey-led Fintech Square and popular trading app Robinhood. 

Institutional Investment in Bitcoin

Facilitating Bitcoin ownership is one thing; some Wall Street firms are now going all in and purchasing Bitcoin. This is a bold statement from the financial mainstream, which basically ignored Bitcoin in its first decade of existence. 

Bitcoin has a unique value proposition because of its decentralization. The fixed supply at 21 million means that there is scarcity, much like there is for gold. Scarcity allows people who don’t have much faith in equity markets to explore Bitcoin as an alternative store of value. This is a trait that Bitcoin has solidified with time.

Microstrategy is the most notable institutional investor. This is a NASDAQ listed business intelligence company that has upped its Bitcoin holdings to over $450 million worth of Bitcoin. The company increased its Bitcoin holdings from 16,796 Bitcoin to 38,250 Bitcoin in September.

This impressive haul is indicative of a company that strongly believes in Bitcoin’s upside. Microstrategy is not alone in this. Other institutions with notable holdings are Galaxy Digital Holdings, which has $190 million in Bitcoin under management, and Square Inc., which has $50 million invested in Bitcoin. Notably, Square Inc. is also listed on NASDAQ.

The list is long, with mutual funds like Ark Invest and Horizon Kinetic also part of the fray.  To make an analogy from nature, this is like seagulls circling over a certain spot in the sea. There is very likely to be something good going there.

These institutions employ some of the best analysts in the world. Their decision to invest, or in Microstrategy’s case, double down on Bitcoin is a calculated decision based on reliable projections.

What the Investments Say about Bitcoin

The fact that Bitcoin has acquired this level of legitimacy with next to zero government or media support is all the more impressive. Institutions were initially wary of investing in Bitcoin because they doubted its long-term potential. Twelve years in, Bitcoin is stronger and more stable than ever, having just emerged from the ravages of Covid without government stimuli.

Bitcoin has a solid community and mining base to push it for the foreseeable future. The fact that Bitcoin has a fixed supply is an excellent feature because it distinguishes it from fiat currencies. In the past decade, governments have pushed money printing to the brink, in a bid to shore up their economies.

This unprecedented level of money printing is gradually watering down the value of national currencies. Venezuela and Zimbabwe are extreme examples of what can go wrong when the government decides to print money without regard. This is not to say that major economies are headed there, but rather to highlight that the extreme quantitative easing will have some effect.

By capping Bitcoin’s supply, Satoshi Nakamoto set it up for this precise moment. It may not be a very successful medium of exchange but can serve the interest of those seeking to store value in the face of cash degradation and uncertain stocks. 

How to Get Bitcoin, the Role of Mining

Wall Street Legend and Billionaire Paul Tudor Jones recently claimed that purchasing Bitcoin now is like getting investing in Google early. Google had similarly humble beginnings with founders Sergey Brin and Larry Page trying to sell it to Yahoo, only to get turned down. Today, Alphabet is one of the most powerful companies in the world, and Sergey and Larry have tens of billions of dollars in their pocket for equal measure.

Jones believes that Bitcoin is on the cusp of great upside. He compared the current performance of Bitcoin to a baseball game in its first inning, meaning that there is more to come. 

Such statements would not be floating around ten years ago, certainly not from people of his profile. Established investors now see Bitcoin as a credible tool, which prudent investors can use to hedge against inflation. This has been gold’s role for decades, and Bitcoin is about to take the hedging factor a notch higher.

Getting Bitcoin can be in two major ways. If you are liquid enough, you can straight up purchase the amount of Bitcoin you need from an exchange and store it in your Bitcoin wallet.

The other option is for the patient, those who want to build from down up and have consistent income. Bitcoin mining is an important feature of the Bitcoin landscape. 

Mining is the process by which new Bitcoin is generated.  Miners donate their computing power to help verify Bitcoin transactions and add new blocks of Bitcoin transactions to the existing Bitcoin blockchain. 

Upon successful addition of a block to the blockchain, miners get rewarded with 6.25 Bitcoins. Additionally, miners also benefit from transaction fees on each Bitcoin transaction.

This important process helps to secure and decentralize the network. It is also mutually beneficial because the network benefits, while miners earn rewards. 

Getting Into Mining, Mine With VBit Technologies

Mining can be a lucrative affair, but only if you have the right equipment. It is a competitive process, and only the latest and most sophisticated mining rigs stand a chance. 

Mining using older equipment is like trying to compete with modern manufacturers using pre-industrial revolution techniques. 

Besides, Bitcoin mining is a power-intensive and heat-producing affair. Mining Bitcoin in your home, even with powerful equipment can be counterproductive. This is because the amount of money you will spend on power bills may nullify returns.

Here is where a professional hosting service like VBit Technologies comes in. 

We are an equipment reseller that offers hosting services with the right conditions. Our data centers in North America are strategically located to ensure they maximize on natural cooling while benefiting from cheap renewable power. This set-up ticks all the logistics boxes for optimized mining.

This is your chance to get into Bitcoin at the right time. Years from now, you may appreciate the decision like the early investors in Google.

Sign up on the VBit Technologies website today and start mining BTC!

Categories
Subscribe and Follow

Hey! If you liked what you read, subscribe to our Blog and once a week we will send you a digest with our articles (tutorials, tips, expert advice, etc.).