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Cryptocurrency

BTC whales on the rise, as COVID-19 changes Bitcoin’s status quo

Bitcoin Whales are generally BTC market players with high amounts of BTCs in the Bitcoin market.

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Bitcoin users rise in Nigeria despite Senate, CBN campaign against it, Answering the big Bitcoin question - buy, sell or hold?, Bitcoin hits a 12-month low, Bitcoin price under pressure, stays under $7000, How to protect your bitcoin from hackers, Bitcoin Whales Gathering More Bitcoins, Waiting For the Bullish Run, Bitcoin is scarce, entities, individuals hold for long term

Despite Bitcoin’s failure to break an important resistance level, as observed since the beginning of June, data from Santiment Research Company shows that the number of BTC whales have continued to go up.

Roughly 67 new addresses containing 100 to 1,000 BTC have joined the network since June 3.

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Bitcoin Whales are generally BTC market players with high amounts of BTCs in the Bitcoin market. The BTC whales usually have 100 BTC or more.

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READ ALSO: Halving: Bitcoin whales gather more BTC, waiting for bullish run

Why these are important: As BTC whales accumulate BTCs, Bitcoins circulating supply reduces, and this can weaken any bearish trend BTC finds itself in. Meaning over time, it’s possible that as Bitcoin approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.

Meanwhile, as countries around the world continue to feel the impact of the coronavirus pandemic, global central banks are printing more money in a bid to stimulate economic activities. These measures have undoubtedly lowered the value of fiat currency.

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To gain a better understanding of COVID-19’s impact on Bitcoin, Yoni Assia, CEO of eToro, explained in detail how the world is turning to Bitcoin since the pandemic caused a severe global financial market downturn. He said:

“Since measures were announced by the Federal Reserve to introduce unlimited quantitative easing in an attempt to stem the downward spiral of global economies, many investors have turned to Bitcoin as a hedge against a depreciating dollar.”

READ ALSO: Bitcoin: Nigeria’s new goldmine

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Wayne Chen, CEO of Interlapsen, said that bitcoin’s status had changed to become a safe haven asset, “The coronavirus has undoubtedly supported Bitcoin as a safe haven and a store-of-value asset. During any economic uncertainty, people immediately divert to alternative assets such as gold, and now Bitcoin to prevent currency erosion.”

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Olumide Adesina a French-born Nigerian, an Investment Professional at Nairametrics Financial Advocates, owners of Nairametrics.com. He is a Certified Investment Trader, with more than a decade working expertise in Investment Trading. A member of the Chartered Financial Analyst Society. Financial Market; Yale University, Behavioral Finance; Duke University. You can follow Olumide on twitter @tokunboadesina or email [email protected]

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Cryptocurrency

USDC Treasury Transfers 20,000,000 USDC to Unknown Wallet

According to data from Coinmarket cap, the digital coin has experienced growth exponentially.

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Cryptocurrencies, Meet the cryptocurrency catching the world’s attention, Theta Fuel gains 630% in 5 days., U.S regulator invites Banking and Crypto industry leaders for partnership, 3 Crypto Exchanges Control About 14.3%, Circulating BTC Supply. 

As global investors seek the next big thing in the crypto asset space, fast-growing cryptocurrency, USDC, a stablecoin project founded by Circle and Coinbase, just released a whopping 20 million digital coins to an unknown wallet. This is according to Whale Alert, an advanced blockchain tracker, and analytics system.

READ ALSO: Tether, the most promising stable coin, now the third most valuable cryptocurrency

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Crypto lovers seem to be trooping to stablecoins lately, as USD Coin’s (USDC) market cap broke the $1 billion market capitalization threshold for the first time since the stablecoin was launched in October 2018.

READ ALSO: These coins are currently trading close to their ICO prices

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Quick Fact: USDC is a fully collateralized US dollar stablecoin. It is an Ethereum powered coin and is the brainchild of CENTRE, an open source project bootstrapped by contributions from Circle and Coinbase. USDCs are issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency in a 1 USDC:1 USD ratio.

Things you must know: Investors of stablecoins, such as USDC, make money by earning dividends from the newly created digital coins being given to them for holding such stablecoin stock.

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According to data from Coinmarket cap, the digital coin has experienced growth exponentially.

USDC, the second-largest USD-pegged stablecoin after Tether (USDT), is ranked the 18th largest cryptocurrency by market cap, with a daily trading volume of $246 million.

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Cryptocurrency

Earning BTCs without Having To Pay Money

BTC Miners help in facilitating BTC transactions and the provision of security on the blockchain network. 

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dollars, Bitcoin has halved, what happens next?, Naira should watch out; Nigeria leads in the peer to peer use of Bitcoin than all African countries combined

BTC miners, hard work seems to be paying off, with billions of dollars going to their coffers, Data obtained from Glasscode showed that BTC miner revenue (“Thermocap“) is now at $17.5 billion USD. This metric is used as a lower bound for the capital inflow into an asset. 

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Mining is the process of adding confirmed transactions to the Bitcoin blockchain. For the resources required to mine, the blockchain network rewards BTC miners via transaction fees and subsidies. Subsidies are paid per block at a current rate of 6.25 BTC. Fees are paid per transaction. 

READ ALSO: QKC: fastest rising crypto asset in 30 days, gains 100%

Metric Description 

Aggregate security spends, or “Thermocap“, is the aggregated amount of coins paid to miners and serves as a proxy to mining resources spent. It serves as a measure of the true capital flow into Bitcoin and is computed as the aggregate Coinbase transactions multiplied by the price in USD at the time they were mined.  

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Quick fact; BTC Miners help in facilitating BTC transactions and provision of security on the blockchain network.  The importance of BTC miners can’t be underestimated as they perform these functions, by solving computational tasks which permit them to chain together blocks of transactions 

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By mining BTC, you can earn a BTC without having to pay money for such. BTC miners collect BTC as a reward for completing “blocks” of confirmed transactions which are added to the blockchain network. 

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Cryptocurrency

Nigeria leads Africa combined in Q2 2020 on BTC P2P

It shows that BTC is fast gaining the trust of Nigerians for payments and transfers.

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Binance, BTC wallets holdings 0.1 BTC reaches all time high, 13,000 BTC wallets are now worth more than $1,000,000

Nigerians increasing their use of BTC is no longer news, but what seems astonishing is the volume that Nigerians transacted with BTCs in Q2 2020, compared to other African countries. Data shows that the use of Bitcoin for peer to peer lending in Nigeria is on an astronomical run.

Recent statistics obtained from usefultulips, a BTC analytic data provider, showed that Nigeria led the pack with more than $34.4 million, while the closest rival, South Africa, had a transactional value of just $15.2 million during the last 90 days.

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READ ALSO: Covid-19: Guinness Nigeria warns investors its results will be bad

Among top countries in the last 90 days leading in peer to peer Bitcoin transactional trades on the African continent are:

Nigeria – $34.4 million dollars
South Africa – $15.2 million dollars
Kenya – $7.8 million
Ghana – $640,000
Tanzania – $600,000

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Quick Facts: In BTC’s case, peer to peer is the exchange of BTC between parties (such as individuals) without the involvement of a central authority. This means that peer to peer use of BTC takes a decentralized approach in the exchange of Bitcoins between individuals and groups.

It shows that BTC’s long-running narrative as the “digital gold” for hedging against global economic turmoil is gaining the trust of Nigerians for payments and transfers.

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The financial market turmoil triggered by COVID-19 has definitely changed the way Nigerians view the whole financial system, as data also obtained from Google trend shows Nigeria leading the pack around the world in Bitcoin searches. This is a testament to the fact that Nigerians truly love their Bitcoins.

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