Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Venmo Gives 70 Million More Reasons to Buy Bitcoin Now

Venmo Gives 70 Million More Reasons to Buy Bitcoin Now

The performance of Bitcoin over the past month has been mixed, leading investors to wonder if the rally that began back in October 2020 is finally slowing down. And indeed the rally may be tapering off, with the largest cryptocurrency by market capitalization shedding about 16% of its value in just four days (April 14 to April 18).

But amidst it all, there’s another reason to be optimistic about the long-term potential for BTC-USD.

What Happened?

PayPal subsidiary Venmo announced on April 20 that its 70 million-plus users will now be able to buy, hold and sell cryptocurrencies on its mobile app. Venmo’s move to offer its users crypto access extends PayPal’s foray into the crypto world, as PayPal users can already pay online merchants globally in crypto.

Why This Is A Big Deal for Bitcoin

For the record, the original purpose of bitcoin is to become a widely adopted peer-to-peer money that people actually spend.

In order for that to happen, people need to have easy access to the cryptocurrency. And widespread institutionalization is the fastest way to get crypto into people’s hands because large institutions already have the users, according to a report from Big Four accounting firm KPMG.

According to the report:

“Cryptoassets have potential. But for them to realize this potential, institutionalization is needed. Institutionalization is the at-scale participation in the crypto market of banks, broker-dealers, exchanges, payment providers, fintechs, and other entities in the global financial services ecosystem. We believe this is a necessary next step for crypto to create trust and scale.”

Venmo’s move is another step towards at-scale institutionalization of crypto. Cash App, a competing payment application from Jack Dorsey’s Square, already offers crypto access to its 30 million-plus users. The image below, provided by BofA Securities, shows notable institutional bitcoin adoption moves since Q3 2020.

What Does This Mean for Bitcoin Price?

On April 20, the day Venmo announced its new crypto offering, bitcoin recovered some of its losses from the recent crash, rising roughly 1.5% on the day. However, the announcement hasn’t been enough to push bitcoin into another rally. On the contrary, BTC-USD has dipped further than the price level when Venmo made its announcement.

At present, fears about a reported crackdown by the U.S. Treasury on the use of digital assets for money laundry, coupled with a reported blackout in the Xinjiang region of China, appear to be more significant factors for bitcoin. To clarify, Xinjiang is home to several bitcoin mining farms, and a blackout there significantly reduces the global hash rate for the bitcoin network.

While it’s difficult to tell when bitcoin price will recover from its recent losses, the Venmo announcement provides another assurance that bitcoin is here to stay. As more institutions begin to offer their customers access to bitcoin, the cryptocurrency’s demand will continue to surge, as more people would have easier access to it. Also, as more people start owning bitcoin, its use case as a medium of exchange will continue to evolve.

Given that the crypto market is still in its nascent stage, I believe the crypto market will continue to experience periods of high volatility. However, I believe that any institutional adoption announcement is a signal to buy and “hodl“ for the long-haul.

Source: fintechs.fi - Fintech News

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×