On Tuesday, March 30, PayPal announced that it will start allowing U.S. consumers to use Bitcoin and other cryptocurrencies to make purchases at all of the organization’s 29 million global online merchants. This now makes PayPal one of the largest mainstream financial companies to open its services to cryptocurrencies, a move that could significantly boost the use of digital assets in everyday commerce.
To help viewers better understand the world of Bitcoin and cryptocurrencies, America’s Voice Live (AVL) turned to Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insights.
According to Sawchuk, Bitcoin is a store of value and its price is determined by supply and demand. If more people want it, the price will go up. Despite this, Sawchuk believes that investors should not be concerned with the rumors that Bitcoin’s value can “just disappear” overnight.
“It doesn’t disappear… It’s no different than the stock market, right? Let’s take Apple stock. If you have more buyers than sellers, Apple stock goes up in value. If you have more sellers than buyers, Apple stock goes down in value… Bitcoin is really not that different right now,” explains Sawchuk. “There’s 19.5 million coins in circulation, a lot of which are actually out of circulation since they are held in wallets of people who don’t plan on selling them. So, the number that is out there is actually probably a lot less than 19.5 million and in the end it’s a leger that keeps track of transactions. That’s what the blockchain really is.”
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.