Miners receive 17% profit from commissions after halving
If before halving the reward, Bitcoin miners received only a small part of the profit from commissions, then after halving they began to receive about 17% of income from commissions.
The total profit of miners from the production of the first cryptocurrency decreased by 61% - on May 10, 2,188 BTC were mined, and on May 12, the number of mined coins dropped to 852. Some miners went out of business or disconnected outdated devices, due to which the network hash rate decreased, increased block mining time and even lower the number of mined coins fell.
Despite the decrease in the number of mined blocks and bitcoins, the number of transactions remained at the same level, which led to an increase in fees. If at the end of April the average transaction fee on the Bitcoin network was $ 0.62, then on May 15 its size increased to $ 5.21. In this regard, the income of miners from commissions has grown significantly and amounted to about 17% of the total profit.
Note that in US dollars, miners began to receive noticeably less income - it decreased from $ 19.25 million as of May 9 to $ 7.82 million as of May 12. At the same time, it is not a fact that the next recalculation will reduce the difficulty of mining, since before the halving, the hashrate of the Bitcoin network has grown significantly.
Most likely, with each halving of the reward to miners, they will receive an increasing percentage of their income from transaction fees. Recall that the third Bitcoin halving took place on May 11, and soon the network hash rate decreased by 16%.
EToro Analyst: Bitcoin Could Break $ 20,000 In 18 Months
Over the next 18 months, Bitcoin will be able to break above $ 20,000, according to eToro analyst Simon Peters. Moreover, the expert does not even exclude such an option in which BTC will test the values at the level of $ 50,000, Bloomberg reports.
Cryptocurrency demand will explode if central banks begin to move towards negative rates en masse.
Recently, US President Donald Trump called on the Federal Reserve System to bring the discount rate to negative values. According to the head of the White House, such a monetary policy will give an impetus to the activity of the business sector.
An analyst at eToro said that if the United States and many other countries do go to negative rates, then investment in Bitcoin will begin to grow at a rapid pace. After that, taking the mark of at least $ 20,000 is already inevitable.
The largest digital currency has performed very well this year. the coin has grown by about 30%, now it is close to $ 10,000. The S&P 500 stock index during the same period of time added only 11%.
Panxora CEO Gavin Smith shares a similar view.
While traditional markets are becoming uncertain, we can expect more and more investors to use Bitcoin as an inflation hedge and to protect assets from currency devaluation.
FTX Launches Bitcoin Hashrate Futures Contracts
The FTX Cryptocurrency Derivatives Exchange has announced the launch of Bitcoin hashrate futures contracts. Traders will be able to earn money by changing the mining difficulty of the first cryptocurrency.
For calculations, the average indicators of the complexity of mining for a certain period of time are used. As FTX explained, it is impossible to accurately measure the hash rate - you can only calculate its approximate value, taking as a basis the time and complexity of mining a block. Therefore, over long time periods, the average hash rate will be proportional to the average mining difficulty.
FTX spoke about three bitcoin hashrate futures contracts. The first one covers the average difficulty of mining in Q3 2020 - from July to September. The exchange also launched futures contracts for Q4 2020 and Q1 2021.
The exchange initially announced plans to launch futures contracts back in August. FTX CEO Sam Bankman-Fried said miners and firms in the mining industry have shown great interest in the product. However, Bitcoin hashrate futures, like other FTX products, will not be available to US citizens.
The idea of launching bitcoin hashrate futures is not new. So, this year, the contract for computing power was presented by the brokerage firm BitOoda, and in December, the mining company Interhash, together with the liquidity provider GSR, announced plans to develop tools for working with derivatives, which would allow mining companies to hedge their risks.
Darius Sit, co-founder and managing partner of QCP Capital, said that about a year ago, crypto derivatives operator LedgerX also offered a similar product, but there is no supporting information about this.
FTX launched futures contracts a few days after the Bitcoin halving, which halved the miner's reward from 12.5 BTC to 6.25 BTC. This event with a high degree of probability can lead to a drop in the hash rate and an increase in the complexity of mining, so futures on the bitcoin hash rate may be of interest to the miners of the first cryptocurrency.
Bithumb to Delist Monero Following Huobi Korea
South Korean exchange Bithumb announced the delisting of Monero cryptocurrency, local edition Newsway reports.
The cryptocurrency will be removed from the trading platform on June 1st. The decision was made by the audit council of the exchange, having considered the proposal, which was originally drawn up a month ago.
In April, it became known that Bithumb was under pressure in the local community due to the trade in cryptocurrency, allegedly used to receive payments by the administration of the Telegram channel N-th room, accused of sexual exploitation. In the same month, the decision to delist Monero was made by the Huobi Korea exchange.
Bithumb noted that Monero trading volumes have dropped markedly in recent months. Talking about methods to combat illegal cryptocurrency transactions, the company writes: "We are conducting a technical assessment of the traceability of transactions as part of ongoing discussions with organizations representing cryptocurrencies that have characteristics similar to Monero."
The company also emphasized that it strives to provide a secure and compliant legal environment for cryptocurrency transactions.
At the time of publication, Monero is the 14th largest asset in the market with a capitalization of $ 1.1 billion.