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PayPal May Earn $2 Billion in Revenue from Bitcoin Alone By 2023

Paypal’s Move to Crypto Might Is not What it Seems, Here’s the ‘Catch’

Paypal’s Move to Crypto Might Is not What it Seems, Here’s the ‘Catch’Dan Dolev, an analyst with Mizuho, predicts PayPal to earn $2 billion in revenue by 2023 from Bitcoin alone, MarketWatch reported on Jan 15. Support for Cryptocurrencies is a Boost In late October, PayPal–a US-based payment processing company–announced their support for cryptocurrencies. They first allowed clients in the United States to trade and hold several

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Dan Dolev, an analyst with Mizuho, predicts PayPal to earn $2 billion in revenue by 2023 from Bitcoin alone, MarketWatch reported on Jan 15.

Support for Cryptocurrencies is a Boost

In late October, PayPal–a US-based payment processing company–announced their support for cryptocurrencies. They first allowed clients in the United States to trade and hold several cryptocurrencies, including Bitcoin Ethereum.

Their decision, which analysts said was strategic, comes after months of speculation that the platform was at an advanced stage of integrating support for select cryptocurrencies.

With their announcement, supported coins posted remarkable gains. Most notably, since October, the BTC price has more than tripled, racing to around $42k, according to trackers.

Bitcoin and Crypto Services to Boost Revenue

Now, considering the potential and institutional interest, PayPal acting as a conduit for their over 300 million clients would be the much-needed tailwinds.

Already, year-to-date, the PayPal market valuation has more than doubled as its stock price rose 111 percent.

Based on crypto holders’ account activity and comparatively high account balances–as observed in the last few months, PayPal could receive a significant boost in revenue if the analyst’s forecast is true.

The PayPal stock may rise to $350 within three years from spot rates in his projection, adding $60 from his early projection of $290.

PayPal Could generate $600 Million in Revenue from Crypto in 2021

Another analyst, Lisa Ellis of MoffettNathanson LLC, also says that the PayPal support of Bitcoin would help in diversification and is strategic for the payment processing firm.

In her assessment, their support of crypto services would potentially help the firm generate between $300 million and $600 million by the close of 2021.

In a note to clients, she says:

“Over the long-term, we believe PayPal’s cryptocurrency initiatives have significant strategic value, helping PayPal diversify the PayPal and Venmo apps into “destination apps” for a broad range of financial services, and positioning PayPal to help shape the long-term role of cryptocurrencies (and government-backed digital currencies) in the consumer payment system.”

A survey in early December 2020, as BTCManager reported, revealed that PayPal users were gearing up to use Bitcoin as a funding source for online shopping.

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Source: https://btcmanager.com/paypal-may-earn-2-billion-in-revenue-from-bitcoin-alone-by-2023/

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NEXT Chain: New Generation Blockchain With Eyes on the DeFi Industry

[Featured Content] The cryptocurrency industry is booming throughout the past year, and the increase in the total market capitalization is definitive proof. The market is, at the time of this writing, valued at about $1.5 trillion. The same can be said about the DeFi industry. The total value locked in various protocols exceeds $39 billion, […]

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[Featured Content] The cryptocurrency industry is booming throughout the past year, and the increase in the total market capitalization is definitive proof. The market is, at the time of this writing, valued at about $1.5 trillion. The same can be said about the DeFi industry. The total value locked in various protocols exceeds $39 billion, […] Checkout PrimeXBT
Source: https://cryptopotato.com/next-chain-new-generation-blockchain-with-eyes-on-the-defi-industry/

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‘Bitcoin Senator’ Lummis Optimistic About Crypto Tax Reform

Sen. Cynthia Lummis, the first in the Chamber to own Bitcoin, says bipartisan support will accelerate crypto tax reform.

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Sen. Cynthia Lummis (R-Wy) expressed hope on Wednesday that Congress will be able to reform the tax rules governing cryptocurrency, which have been a longtime bugbear for Bitcoin owners and the burgeoning crypto industry.

“We’re optimistic we can find bipartisan agreement on that issue,” said Lummis during a meeting with crypto executives and policy makers on the social media app Clubhouse.

The comment from Lummis, who has owned Bitcoin since 2013, came in response to a question about whether Congress will pass a proposed law calling for a “de minimis” tax exemption for small cryptocurrency transactions.

Currently, IRS guidance stipulates that any minor crypto transaction—such as sending $5 worth of Bitcoin to a friend or using it to buy a cup of coffee—can amount to a capital gains event. Critics say this rule creates needless tax headaches, and discourages innovation by limiting the use of crypto in day-to-day transactions.

And while the IRS has become preoccupied with collecting tax on crypto—a question about virtual currency is now at the top of filers’ income tax return—the agency has done little to simplify the process for reporting it.

Lummis’s interest could help accelerate the passage of crypto tax reform, which has been proposed in bills before the House of Representatives, but never in the Senate. Lummis, whose home state of Wyoming has branded itself as a crypto hub, also pointed to a new Financial Innovation Caucus she is leading with Sen. Kyrsten Sinema (D-Az) as evidence of bipartisan interest in the issue.

Bitcoiner Cynthia Lummis Wins US Senate Seat

Policy researchers on the Clubhouse call cautioned, however, that passage of crypto legislation is unlikely to occur in the near future. The Biden Administration and Congress is currently wrangling over weighty issues related to the pandemic and economic stimulus, so crypto taxation—a relatively boutique issue—is unlikely to be a high priority.

More broadly, members of the call noted that lawmakers are becoming more knowledgable about cryptocurrency, and not only at the federal level.

Nathan McCauley, the CEO of crypto storage service Anchorage, said that his company has been speaking with several state governments about adding crypto to their corporate treasuries—a move that would mirror what big private sector companies like Tesla and Square have done in recent months.

McCauley suggested the states’ interest in crypto is related to a search for alternate finance and investing options at a time when bond markets are in a prolonged slump.

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Source: https://decrypt.co/60059/bitcoin-senator-lummis-crypto-tax-reform

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Billionaire Hedge Fund Manager and a Former CFTC Chairman Reportedly Invested in Crypto Firm

The hedge fund manager who predicted BTC’s rise to $40k in 2018 and the former CFTC Chair, a.k.a ‘crypto dad’, have invested in BlockTower Capital.

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The hedge fund manager who predicted BTC’s rise to $40k in 2018 and the former CFTC Chair, a.k.a ‘crypto dad’, have invested in BlockTower Capital. Checkout PrimeXBT
Source: https://cryptopotato.com/former-cftc-chairman-and-a-billionaire-hedge-fund-manager-reportedly-invested-in-crypto-firm/

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Bitcoin Price Analysis: Back Above $50K, But Facing Huge Resistance Now

Bitcoin is up by a solid 6% today as the primary cryptocurrency surged by over $3000 over the past 24 hours. Quick recap: bitcoin is recovering after a heavy correction over the past week, in which the cryptocurrency dropped by around 25% as it broke beneath the February ascending price channel (as shown on the […]

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Bitcoin is up by a solid 6% today as the primary cryptocurrency surged by over $3000 over the past 24 hours. Quick recap: bitcoin is recovering after a heavy correction over the past week, in which the cryptocurrency dropped by around 25% as it broke beneath the February ascending price channel (as shown on the […] Checkout PrimeXBT
Source: https://cryptopotato.com/bitcoin-price-analysis-back-above-50k-but-facing-huge-resistance-now/

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