After the spread of the Corona virus, the whole world was affected, and the spread of the virus had many different effects and repercussions, including the economic aspect.

Currently, the political and economic situation in the United States is witnessing chaos, and as a patchwork solution, the US Federal Reserve has resorted to printing more money, which in turn leads to a rise in the prices of other assets.

One of these rising assets is Bitcoin, which has become a mecca for many tech companies that buy a lot of them.

What is stated in statement “Pantera Capital” as follows:

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PayPal and Cash App are already buying more than 100% of all newly mined and newly issued bitcoins.

As larger financial institutions follow suit, the supply of Bitcoin will become even scarcer.

The only way that supply and demand balance is at a higher price.

Available now: we have november #blockchain message

Threads:
• American Elections
• # bitcoin Shortage
• Performance of the Pantera Fund
• Bitcoin price deviation from the 10-year trend
• Purchase of Stan Druckenmiller and Bill Miller Bitcoin
• unequal opportunity

– Pantera Capital November 20, 2020

With the entry of large companies and their acquisition of new bitcoins, the price of bitcoin will rise.

But will this affect individual investors and make them struggle to access Bitcoin in the event that its value becomes much higher?

According to Pantera Capital, a bitcoin shortage is a possibility.

But there is no cause for concern so far, despite the possibility of imbalances in distribution and decentralization. In this regard, Pedro Febrero, co-founder of the Crypto Nerds Academy and an analyst at Quantum Economics stated:

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The number of bitcoins that are concentrated in fewer hands in the long run can be a problem for the democratization of the currency.

The same speaker added:

The supply of Bitcoin is limited, and eventually the big companies will need to sell it.

Finally, we should not forget that not all bitcoins are transacted.

Research conducted by blockchain analytics firm Chainalysis last week showed that the amount of bitcoin available for purchase depends on whether those holding it want to sell or trade it.

According to the percentages provided by Chainalysis, about 77% of all the 14.8 million bitcoins that have been mined are in cold, illiquid wallets, where their owners hold on to them and do not want to sell them.

Meaning that the big buyers are snapping up the coin and watching its value increase.

This is not necessarily a bad thing.

Sean Dexter, Decentralized Finance Analyst at Quantum Economics said:

Big technology, organizations, and owning and holding a large share of Bitcoin will not only increase the underlying security of the network, but it will enhance the store of value proposition.

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He also said:

Regardless of the price of a currency, having an option to buy an asset that no power alone can decide to unilaterally inflate is a form of democracy, and that people will still be able to use as a store of value, as many people already do now.

He added:

Bitcoin will eventually find a balance, perhaps at a very high price, and perhaps with institutions that own a lot of it

But this is irrelevant, because the average person would still be able to store $100 of value in bitcoin, at whatever price.

If things continue as they are, the price of Bitcoin will continue to rise.

You don’t have to worry about the currency disappearing, as Bitcoin will stay and only what has changed is its value, which rises as institutions increase their appetite for it.

But with more institutions turning to Bitcoin, buying Bitcoin has become easier than before, especially after the entry of PayPal.

According to the publication “Pantera Capital”:

Previously, buying Bitcoin was very tedious and required taking a selfie with your passport, and waiting days to a week for the daily limits to be activated.

With the entry of PayPal, three hundred million people have immediate access to Bitcoin, Ethereum and other cryptocurrencies.

It is worth noting that PayPal has not yet provided its services related to encrypted digital currencies, as it is expected to do so starting from 2021, while its services are currently limited to the United States of America only.

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