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PayPal’s Recent Impressive Performance due to Cryptocurrencies, Says CEO

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PayPal’s revenue surpassed expectations at over $6 billion in Q1 2021 and the firm’s CEO said the results were impacted by the addition of cryptocurrencies.

After publishing impressive Q1 2021 results, PayPal’s CEO outlined cryptocurrencies as the major driving force behind the notable increases in revenue and user activity. The largest online payment processor’s first-quarter numbers exceeded previous expectations as its revenue was above $6 billion.

PayPal Attributes Q1 2021 Success to Crypto

When PayPal broke the news last year with plans to enable its multi-million user base to interact with cryptocurrency assets, the community was somewhat divided. On the one hand, over 350 million new users received access to digital assets, while on the other, the firm didn’t initially provide withdrawals and there were concerns of high fees.

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Nevertheless, crypto engagement on PayPal really picked up almost immediately, as seen in the company’s Q4 2020 report. In it, PayPal reported a massive uptick of new active accounts – 16 million.

The situation has repeated to a large extent in Q1 2021 as the newly registered active users grew by more than 14.5 million. Thus, the firm’s total user base expanded to just shy of 400 million.

Further increases are evident for the net profit, which rose to $1.1 billion from $84 million a year earlier. Previous expectations provided by Refinitiv predicted that PayPal’s revenue would be $5.9 billion, while the total payment volume would equal $265 billion.

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However, the company exceeded both as the revenue was $6.03 billion, while the payment volume was $285 billion. The firm’s CEO, Dan Schulman, attributed this substantial increase to his company’s decision to add cryptocurrencies.

“We’ve got a tremendous amount of really great results going on tactically with our crypto efforts.”

The executive added that at least half of crypto-trading users open their PayPal accounts daily.

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Dan Schulman. Source: CNBC

Venmo Adds Crypto Too

PayPal’s success story with cryptocurrency drove the company to add digital asset support for one of the entities it operates. As reported before, the mobile payment service firm Venmo enabled its more than 70 million users to buy, sell, or hold several virtual assets.

Namely, those are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and the firm vowed to add other assets in the future.

Venmo said at the time that the new initiative comes after strong demand from its users, which were eager to start interacting with cryptocurrencies. The company’s GM outlined the event as a significant milestone in the adoption cycle for both digital assets and Venmo.

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Cathie Wood and Tom Lee Agree on Crypto Being Supported by Millennials as Part of $2 Trillion Yearly High-Risk Investments

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Millennials might fuel both crypto and equity market bull runs for additional 10-20 years

The Crypto and equity market might remain bullish for a long period of time with $2 trillion of yearly investments into high-risk assets made by Millennials, according to Fundstrat’s Tom Lee. Relying on previous research, Lee pointed out numerous factors that explain why and how high-risk assets might benefit from a generational wealth shift.

How millennials might fuel the next bullrun

According to the report by Fundstart, an estimated $2 trillion of wealth is moving from Baby Boomers to Millenials per year through inheritance. Unlike “boomers,” millennials prefer to invest in more risky assets like stocks and crypto in order to earn more profits in a short period of time.

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Since Baby Boomers will account for a smaller pool of wealth as time passes, the investment direction will shift on the market in favor of high-risk assets like cryptocurrencies, which will become fuel for the crypto and equities market. Lee stated that, in the long term, traders should keep an eye on the stock market with the structural shift in investors’ behavior.

Cathie Wood supports her colleague’s theory

Lee’s theory was also supported by Ark Invest’s Cathie Wood, who relied on his research for her argument. She said that she believes in both crypto and the equity markets since those will be fueled by investments coming from millennials in the future. According to Wood, Millenials understand and support the rapidly changing world of technologies, unlike Baby Boomers, which feel more comfortable with more conservative investment options like bonds and commodities.

In June, Lee wrote that “bull market until 2038” is possible if his theory is confirmed and the generational wealth shift goes according to plan.

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Total Market Cap
Source: TradingView

In the period 2020-2021, the cryptocurrency market has faced unprecedented 1,500% growth, with more support coming from institutional investors. Previously, numerous large banks in both Europe and the U.S. stated that their clients are looking forward to investing in digital assets.

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Dolce & Gabbana Wants to Crown Dogecoin Fan Elon Musk as “King of Crypto”

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Will Elon Musk be crowned as the new crypto king?

Italian fashion house Dolce & Gabbana has suggested that Tesla CEO Elon Musk should be anointed as the king of crypto if ends up owning the Doge Crown.

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The piece of jewelry is part of the fashion giant’s first collection of non-fungible tokens that was launched in partnership with Polygon-based digital token marketplace UNXD earlier this month.The Doge Crown, which features seven blue sapphires and 142 diamonds, was designed by none other than Domenico Dolce and Stefano Gabbana themselves.  

DG
Image by unxd.com

The crown has nothing to do with the meme cryptocurrency or its most famous cheerleaders since it was named after the former title of the supreme authority of Venice.

The buyer will get 4K rendered animation and 4K rendered stills of the item as well as its physical version.

The current bid is $501,819, which was placed by user ethmad, appears to be just pocket change for Musk. The auction is ending in three days and 21 hours.

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New Survey Shows Australian’s Love for Crypto is Fueled by These Noble Drives

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Australians appear to be more knowledgeable in their investment strategies as many are beginning to buy into cryptocurrencies for the right reasons. As highlighted in a recent survey conducted by BTC Markets, it was shown that acquiring digital assets was not a function of ideas to get rich quickly, rather, investors who are purchasing digital currencies are doing so to build wealth, and for retirement purposes amongst others.

Per the survey, 70% of the respondents to the survey said their sole aim of embracing crypto is to build wealth. This is a possible scenario seeing the high rate of growth of established coins compared to traditional investment assets. 34% of respondents buy-in to crypto so they can fall back on the gains when they retire, with some 28% affirming their aim to be portfolio diversification.

Cryptocurrencies have matured when compared to the level it was in the past decade. Today, institutional investors, as well as retail buyers, are all bullish on Bitcoin (BTC), Ethereum (ETH), and other altcoins with unique fundamentals.

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“The motivations for investing in cryptocurrency are many and varied. A majority of respondents to our survey, 70 per cent, say they are looking to build wealth. A significant percentage, 34 per cent, say that one of their goals for investing in cryptocurrency is to retire early.”

The reasons for acquiring crypto also span such needs as paying down for debts (at 12%), and in starting a business claimed by 4% of the respondents.

Diversity in Investor’s Portfolio

The investors who responded to the BTC Markets survey show diversity in their investment portfolios. This trend shows that despite the rising popularity of crypto assets, the bulk of investors are not in it for the frenzy attached to meme-tokens.

Of the total respondents, as much as 63% said they have investments in stocks or shares, 29% have injected capital in investment properties, while 20% said they have funds in precious metals including Silver and Gold. Of the profiled investors, only 20% said they hold only cryptocurrencies.

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Drawing on this diversity, the report reads;

“This spread of investments across a wide range of asset classes consolidates the view that a large majority of investors are not using cryptocurrency as a “get rich quick” investment. Instead, it is as part of a carefully considered asset allocation strategy for an overall wealth portfolio”

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