If bitcoin price action is any indication, PayPal’s decision to support BTC transactions is a pretty big deal.
Not only has the BTC price rallied beyond the $12,000 level, but it’s nearing $13,000 and showing no sign of slowing down anytime soon. In yet another tailwind, the development occurred on the same day that UK-based fintech company Mode Global Holdings announced its own bitcoin push.
And while most of the crypto community is ecstatic about a household name like PayPal welcoming bitcoin and seeing their years of loyalty paying off with green shoots of mainstream adoption, there are others who challenge the payments company to go all-in on crypto.
Willy Woo: ‘This Is a Big Deal’
Onchain analyst Willy Woo showcased the user bases of both camps — PayPal and bitcoin. With some help from Glassnode’s “forensics,” Woo was able to estimate that bitcoin boasts more than 187 million HODLers, based on a “clustering of wallets,” compared to PayPal’s 346 million. In case there was any room for doubt, Woo emphasized that “this is a big deal.”
This is a big deal.
— Willy Woo (@woonomic) October 21, 2020
Woo added more perspective, saying that “2.4% of the world population are HODLers of bitcoin” and calling it the “early adopters phase.” This PayPal development could have broader implications, with Woo predicting that BTC user adoption will “go exponential” and “decouple stocks…very soon.”
Following the Leader?
On the other side of the spectrum, Twitter account Plan B, who boasts more than 140,000 followers, downplayed the PayPal development, criticizing the company for not allowing users to transfer crypto to other accounts on the payments platform. He equated it to a “nothing burger” and “nothing more than a “central PayPal database.”
Others were quick to point out, however, that it’s anything but a nonstarter. Kraken Growth Lead Dan Held said,
“Don’t let perfect be the enemy of good. Hopefully, at a later date, they open it up to be able to withdrawal. They still have to buy Bitcoin. This isn’t fractional reserve.”
Blockstream Co-Founder Adam Back pointed out that this is precisely what exchange eToro did, added withdrawals later.
Meanwhile, full-time trader Crypto Michaël, who has more than 81,000 followers on Twitter, shrugged off the development, suggesting that PayPal needs bitcoin more than the other way around.
It’s great that PayPal is accepting crypto payments, but ehm, crypto and #Bitcoin doesn’t need PayPal.
— Michaël van de Poppe (@CryptoMichNL) October 21, 2020
Perhaps the best response so far should go to bitcoin bull and Digital Currency Group CEO Barry Silbert, whose rivalry with gold lives on.
When is PayPal adding gold?
— Barry Silbert (@BarrySilbert) October 21, 2020
Incidentally, the gold price added bout 1% on Oct. 21 while bitcoin’s gains exceeded 7%.