On Wednesday, February 02, 2022 the shares of PayPal went down. PayPal Stock went down by 25% and this led investors contemplating on whether they need to buy or sell the stock after the big drop.
PayPal CEO Dan Schulman however, stated, the company took “a measured approach” to guidance, but expects revenue to accelerate in the second half of the year.
Reportedly, about 4.5 million illegitimate accounts have joined the platform and this in turn led PayPal to miss the user growth target.
So, what is about the weak guidance? The weak earnings guidance happened because the analyst estimates did not happen. Mixed earnings were reported for Q4 2021 earnings.
CNBC pointed to how, “The company expects Q1 non-GAAP earnings per share of 87 cents, short of the $1.16 analysts anticipated. It also reported weak full year revenue growth guidance for 2022.”
Bitcoin Magazine shared: “PayPal’s stock is down 25% today. Bitcoin is too volatile.”
Thus, Bitcoin Magazine was trying to emphasize that not only Bitcoin is volatile, but even stocks can be as volatile. The PayPal Shares Volatility Vs. Bitcoin Shares Volatility leaves us wondering about:
So, to those who are saying cryptocurrencies are not very stable right now. Is this (volatility) a problem? Because those who bought bitcoin have in reality made a good profit.
So, the PayPal event is just proving that there is risk involved in any kind of investment. It further goes on to emphasize that people not buying crypto because it’s too volatile – is not a reason, because even stocks can be volatile.
Lot of market events are in favour of Bitcoin. And, the “not-to-buy-Bitcoin narratives” are drying out by the unfolding of real-time real-world investment events.
When it comes to trying to spell doom for Bitcoin with narratives, it is seen time and again that these narratives can get defeated with application of little critical thinking.
Bitcoin is far away from being volatile. 1 BTC will always be exactly 1 BTC. Like in the old days: 1$ was always exactly 1$.
Also, people aren’t using PayPal stock to buy their food. Transfers on PayPal use US Dollars, not PYPL stock.
Volatility or not, the fact remains that even in the price dip, there is a lot of Bull Run to anticipate.
However, the criticism that the fall in shares of PayPal by 25% does not cancel the fact of the volatility of BTC continues in the market.
Some say, PayPal owns a lot of BTC and therefore, “no doubt that led to some part of its sell-off.”
Volatility is not measured by one drop or dip. How many times in the past year did PayPal drop this much?
We need to remember that Bitcoin is not a stock to be compared with PayPal.
May be wrong comparison, but what we need to understand is that Volatility is not a problem in crypto. There are many who use stable coins to stay in the crypto market and to manage the volatility trends.
Honestly, everything is about people being scared of what they don’t understand. If they don’t want to take the time to understand blockchain tech, they probably won’t invest. It has little to do with volatility – there is volatility everywhere.
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