Peter Thiel is Already a Bitcoiner
Peter Thiel, legendary investor and cofounder of PayPal has already weighed in on cryptocurrencies. Back in 1999 Thiel is quoted saying
“Encrypted money will change the world”
This hints that early PayPal only wishes that it could offer what bitcoin and other cryptocurrencies offer. However, limitless and borderless transactions appear to be a feature exclusive to decentralized cryptocurrencies. There is ample evidence that bitcoin is actually what Peter Thiel wanted for PayPal. An early goal of PayPal was to provide a digital currency that was free from government intervention. This sounds a lot like bitcoin.
PayPal Will Bring 325 Million to Cryptocurrency
PayPal has a user base estimated to be around 325 million monthly active users. This is a whopping amount of people using a money app. A massive amount of people are about to be exposed to cryptocurrency. In 2019 alone, PayPal processed approximately 711 billion dollars worth of transactions. That is about three times the current market of all cryptocurrencies. PayPal already stores massive amounts of money for their customers. Now they’re putting the purchase cryptocurrencies at the fingertips of each and every one of their users.
PayPal Partners with Coinbase
PayPal began its relationship with Coinbase, one of the largest cryptocurrency exchanges in the world in 2016. Coinbase added the ability to withdraw funds to PayPal. This helped solve a long withstanding problem in the cryptocurrency world. That is, selling cryptocurrency for fiat currency, and being able to use it shortly after. PayPal inherently works faster, and better than most banks, so the integration with Coinbase was a welcome addition. Now, it looks like PayPal will leverage the liquidity of Coinbase in order to provide exchange functionality to its users.
Parked Cash to Be Diversified and Invested
PayPal is not just a payment processor, in a lot of ways, they are the first digital bank account. Many people have parked cash in their PayPal account for a rainy day, or for internet purchases. This parked cash now has the potential to be diversified and invested in cryptocurrencies. It is likely that PayPal will only offer a small selection of cryptocurrencies to their users. The most likely choices are Bitcoin and Etheruem. Regardless, once users have either of those cryptocurrencies, obtaining any other is not a difficult process. Users are free to transfer their cryptocurrencies to any number of exchanges in order to diversify their holdings. The broader cryptocurrency community welcomes PayPal into the fold. This day has been long awaited. Now, the savvy among us must do our part to educate the new 325 million users on cryptocurrency.