Bitcoin’s highest rate was $13,000 after PayPal launched its support for cryptocurrency. This support came in the form of allowing users to hold and sell cryptocurrency directly from their PayPal accounts. How this turns out is another factor, however, as Bitcoin (BTC) has proven to be a rather volatile investment at times. Due to its soaring rises and sudden falls, it is hard to identify the factors behind price swings.
Despite this, Paypal & Cryptocurrency seem to be teaming up to storm the market as PayPal has finally introduced cryptocurrency to its users. Users in the US for example can buy 4 different cryptocurrencies using their PayPal wallet. PayPal’s entrance into the crypto world has raised the awareness of crypto assets in general. It has given it a chance to once again leap into the limelight whilst providing support to cryptocurrency itself. Because of this, one of the most popular cryptocurrencies known as Bitcoin has surged in popularity.
Bitcoin (BTC) As Digital Money
Bitcoin is a decentralized digital currency and an online payment system to make online transactions peer-to-peer. What this means is that it is a currency under no one’s authority except its own- banks and lobby’s have no sway over it. As such it has no borders or exchange rates to worry about- one person’s bitcoin is as good as any other. Add to the fact that it is a purely digital asset without any physical quality and you can see its adaptability. The owner leaves an identifying signature for validating legitimate trade and a public key to transfer the cryptocurrency.
But what makes all this possible you might ask? The answer to that lies in its use of Blockchain. Blockchain is the middle man, encrypting and handling the digital transfer of money. This helps provide transparency and aids with peer-to-peer verification. Because of the security encryption protocol, one can use and store Bitcoin safely in Blockchain secure BTC wallets. Overall, it’s a product that is versatile, secure, provides anonymity and shows resilient features for its customers.
Understanding PayPal & Cryptocurrency’s Relationship
PayPal has introduced cryptocurrency to increase the access to and understanding of digital currency among its consumers. Their customers can buy and sell BTC directly using PayPal’s digital wallet. Furthermore, PayPal encourages and provides support for financial service providers to grow and expand in the virtual currency marketplace. It is clear to see that Paypal is putting in the effort to expand both its own infrastructure as well as help cryptocurrency become more useable.
It doesn’t just stop there though. PayPal also provides educational content to its account holders to understand the cryptocurrency ecosystem. They also provide their customers with more in-depth knowledge about the risks associated with bitcoin investment. This includes information on blockchain technology, hopefully giving them enough ease of mind to hold cryptocurrency in a PayPal account.
PayPal customers will also be able to use the cryptocurrency as a funding source from the start of 2021. Consumers will be able to convert their cryptocurrency balance to fiat currency with no incremental fees. It would seem that the signs point towards PayPal & Cryptocurrency maintaining a healthy relationship, both for themselves and customers.
Bitcoin In An Emerging Market
Cryptocurrency has captured the attention of investors, especially after PayPal’s entrance into the digital market. Many people became wealthy by investing in digital assets. The entrance of PayPal into the crypto world will give significant benefits by supporting cryptocurrency trading. This announcement means that investors online will be looking to invest in bitcoin, increasing its overall market value.
PayPal funding service is beneficial for the crypto market as it interconnects the crypto users with traditional finance. Big companies like PayPal in the emerging market attract many people to accept bitcoin as a new trading source.