Earlier today, the Wall Street Journal gave Bitcoin a front-page story on its issue. The report covered the digital asset’s rise over the past month, highlighting its appeal to institutional investors.
An Adoption-Fueled Rally
As the news medium explained, several “Wall Street billionaires” including hedge fund managers Stanley Druckenmiller and Paul Tudor Jones are all paying closer attention to Bitcoin. This has brought the asset to the forefront on Wall Street, with more institutional investors pouring in and cashing on the opportunity to safeguard their wealth.
The Wall Street Journal also noted increased access to retail customers, who can now find the asset on some of their favorite financial service companies.
As the report notes, Bitcoin trading volumes on Square’s Cash App grew to $1.6 billion in the third quarter of 2020 – compared to $555 million in the entirety of 2019. Top payment processor PayPal has also entered the Bitcoin market, providing users with the ability to buy, sell, and trade the asset.
PayPal’s entry has been one of the year’s watershed moments. Although the rollout isn’t global, U.S customers can now buy, sell, or hold Bitcoin. Beyond retail investor use, PayPal is also providing e-commerce integration so its 28 million merchants can receive Bitcoin payments.
PayPal chief executive Dan Schulman told CNBC yesterday that the company aims to improve Bitcoin’s utility as a ubiquitous payment method.
By doing this, they can usher in a new age for digital payments – an era where Bitcoin becomes more of a currency, and not just an investment.
With the payment processor boasting 300 million users, its foray into the crypto industry could become the most significant adoption push for Bitcoin. Not all users would want to transact with Bitcoin, but this move undoubtedly will increase its adoption.
Terrible Reporting from Top Finance News Sources
The Wall Street Journal’s report is a significant contrast to several other financial news sources, who had also covered Bitcoin’s recent performances.
Last week, the Financial Times published an “expose” on Bitcoin, casting its potential as a safe-haven asset into doubt.
The editorial repeatedly bashed Bitcoin for its volatility, explaining that its status as a safe haven for investors looking to hedge their risk was theoretical at best. The news source also pointed out that Bitcoin had no fundamentals on which its value could be judged, adding that its price only represents peoples’ willingness to pay for it.
Like the Journal, The Financial Times also highlighted the increase in institutional adoption and the entry of players like PayPal. With the dollar still on shaky ground, the news source highlighted that Bitcoin could continue its rise.
Fox Business went the negative route as well. In an article titled, Bitcoin no match for gold in coronavirus world,” the news source highlighted quotes from notable crypto detractors like Peter Schiff and Nouriel Roubini. Fox Business went as far as warning readers against crypto investments, explaining that the assets have “no real use” and are highly volatile.