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Cryptocurrency

Bitcoin’s Halving Aftermath: Consumers, institutional investors, rush for BTCs

The use of BTCs has increased exponentially, triggered by the macro fundamentals changing in the present world.

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Bitcoin, BTC, cryptocurrency,Cryptocurrencies and its usage in Africa

The world’s flagship digital coin, Bitcoin, successfully went through the third halving in its history last month, seeing its daily supply of new bitcoin reduced by half.

Bitcoin halving cuts the reward for using BTCs mining software to ‘mine’ bitcoin from 12.5 new bitcoins to 6.25. Since then, the rush for BTCs has never been the same, as consumers, and institutional investors are rushing to have a stake in the most popular digital gold of our time.

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According to a report by Cointelgraph, the use of BTCs has increased exponentially, triggered by the macro fundamentals changing in our present world.

READ ALSO: Bulls push Bitcoin pass $10,000, as America’s turmoil intensifies

Consumer interest continues to rise, with the growth of services such as Square cash app in the US, a mobile payments app that also allows the purchase of Bitcoin. Last month, the company announced that its Bitcoin revenues were up 71% versus the previous quarter to $306m, and up by a staggering 367% year-on-year.

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The growth was attributed to an increase in the number of active Bitcoin customers, as well as growth in overall consumer demand. Strong levels of growth are expected also in emerging markets such as India, where recent regulatory changes are helping to open up a huge consumer market to cryptocurrencies.

Cryptocurrency growth had been restrained until March this year due to the government ban on banks interacting with cryptocurrency businesses. Those restrictions have now been lifted, which will likely help legitimize Bitcoin and other digital currencies.

READ MORE: The New Normal – Digital Transfers and Remittance in Nigeria

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The prevalence of cross border remittance payment needs in India is also acting as a key stepping stone into the world of digital stablecoins and Bitcoin.

Paxful and Local Bitcoins, two peer-to-peer Bitcoin exchanges, have seen steady growth in recent years. This growth will likely accelerate in the new regulatory climate recently announced.

Last month, Paul Tudor Jones, CEO of U.S.-based hedge fund, Tudor Investment Corp, declared his enthusiasm for Bitcoin by announcing that his fund currently holds Bitcoin futures and the fund has allocated around1-2% to this trade.

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READ MORE: US government considers using digital dollars for future payment

Despite Goldman Sach’s skeptical public announcement towards Bitcoin last week, large institutions, in general, have been increasing their involvement in the space. Grayscale Bitcoin Trust bought up a staggering 18,910 bitcoin in a little over two weeks, post the halving. This clearly shows a strong investor appetite for the digital asset, given that bitcoin supply (i.e. mined bitcoin) in that time was only 12,337.

A key part of its appeal is that, despite being extremely volatile, BTC has outperformed most other asset classes significantly in such a testing 2020macro environment. Currently, Bitcoin is up 36% year to date.

Patricia

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

Best time to make money trading BTCs

Midweek had more volatility in the BTC market than the beginning or end of the trading week.

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A Mysterious Bitcoin Whale Causes Brief Panic Sell Offs at Bitcoin’s Market, The odds against Bitcoin, Goldman Sachs says Bitcoin is not an investment asset, BTC whales control the BTC market, at the highest levels 

Most BTC investors and crypto traders are changing their methods of trading in 2020, preferring to trade around the American trading session because of the high price volatility that occurs at the start of New York stock market trading time, about 2.30 pm local time.

Data seen on Twitter feeds show that price volatility for the world’s flagship currency by market capitalization is highly correlated with the opening of American financial markets.

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In addition, other trading sessions like the London and Asian financial market openings have considerably little impact on BTC’s price volatility.

READ ALSO: How BTC Whales can push BTC market value to $1 trillion

“Can we just halt $BTC trading during Asia + Euro hours,” a crypto trader, Hsaka, said uploading evidence, which relates to the previous few days on U.S. exchange, Coinbase.

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The data may have unearthed changing tendencies among BTC traders, possibly due to the increasing prevalence of institutions within the market.

Furthermore, Skew.com, a crypto analytic firm, found out that the midweek had more volatility in the BTC market than the beginning or end of the trading week. Weekends were also observed to be quiet.

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Meanwhile, data from Glassnode, a data analytic firm, showed that about 1.8 million Bitcoins are held in miner wallets around 10% of the supply (18.5million BTC). However, around 1.73 million belong to first-time miners (7+ years) and are most likely lost. That leaves only 70k BTC in the hands of current mining pools.

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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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