The announcement of cryptocurrency being adopted by PayPal has lead to renewed investor interest (and rightly so, it is a considerable milestone in the progression of crypto).
With the date for PayPal users being able to use cryptocurrency for payments estimated to be April 2021, it is expected that the price of gold will decrease up until just before the start of April. Investors are likely to divert funds to take advantage of the increasing value of the 4 named currencies (BTC, ETH, BCH & LTC), with the 'play-it-safe' investors exiting the market at the end of March & further returns to XAU as the crypto hype decreases in the months thereafter.
The reason I would expect this hype to decrease is the fact that while this announcement does indeed add value to the 4 cryptocurrencies, there are still scalability issues meaning payment processing times are far slower than those of fiat currencies, as well as the transaction fees required in order to send payments making their use in place of existing payment methods less attractive.
With the date for PayPal users being able to use cryptocurrency for payments estimated to be April 2021, it is expected that the price of gold will decrease up until just before the start of April. Investors are likely to divert funds to take advantage of the increasing value of the 4 named currencies (BTC, ETH, BCH & LTC), with the 'play-it-safe' investors exiting the market at the end of March & further returns to XAU as the crypto hype decreases in the months thereafter.
The reason I would expect this hype to decrease is the fact that while this announcement does indeed add value to the 4 cryptocurrencies, there are still scalability issues meaning payment processing times are far slower than those of fiat currencies, as well as the transaction fees required in order to send payments making their use in place of existing payment methods less attractive.