Pantera Capital said in a recent letter to investors that payment company PayPal has acquired the equivalent of nearly 70% of all BTC that have been mined in the past month.
PayPal launched its cryptocurrency service this month for US customers. The company noted a high demand for cryptocurrency among users.
Pantera calculated the number of bitcoins on PayPal using data from the ItBit trading platform, which is owned by Paxos. “PayPal launched its cryptocurrency service in partnership with Paxos. Before the integration with PayPal, the ItBit exchange, which is operated by Paxos, had a fairly constant trading volume - the white line in the chart below, ”writes Pantera.
After the launch of the crypto service PayPal, the volume on ItBit has skyrocketed: "The increase in volume on itBit means that within four weeks of the launch, PayPal is already buying almost 70% of the new Bitcoin supply."
The dashed horizontal line on the chart represents the total amount of mined bitcoins. If the growth continues, then demand for PayPal alone will exceed the number of new bitcoins in a few weeks.