Revenue of BTC miners drops by 25%, and coronavirus will speed up launching state cryptocurrencies
Revenue of BTC miners drops by 25%
In March, miners mined a quarter less BTC than in February — their income fell to $380 million. This is the lowest figure for the last 12 months, The Block writes.
The amount is calculated based on the coin price at the time of mining. In March, transaction fees were about 2.12% of the total amount of revenue generated. The major part of the revenue came from block production rewards, which is now 12.5 BTC. In May, this value will be halved to 6.25 BTC.
Miners received the highest revenue in July last year — then they managed to earn about $650 million.
Exchanges expect increased demand for BTC after halving
Cryptocurrency exchanges predict an increase in bitcoin popularity after block rewards reduction in May.
Representatives of the Gemini platform said that halving will change people’s attitude to cryptocurrency for the better. They will make sure that the amount of BTC does not depend on the policy of the U.S. Fed and other regulators, who can start printing dollars at any time.
OKEx said market participants would see the reward reduction as a “quantitative tightening.”
“We expect the competition among miners would be getting intense. Whilst the most efficient miners shall prevail, we believe there would be a surge in demand for miner-oriented financial products which would assist miners to manage their price risk and expected cash outflow,” said Lenniks Lai, the director of financial markets at OKEx.
According to Bitstamp experts, halving will have a “tremendous impact” on the market in the long run.
Deutsche Bank: Coronavirus will accelerate the launch of digital currencies
The coronavirus pandemic will push states to switch to digital currencies, says Deutsche Bank macro strategist Marion Laboure.
Over the past two months, cash circulation has significantly declined, since, according to virologists, COVID-19 can stay for up to 17 days on banknotes. At the same time, the number of non-cash transactions has increased, and this trend will continue in the near future.
State stablecoins will increase the stability of the financial sector and accelerate its transition to digital technologies, the specialist notes.
“While Chinese authorities have been destroying banknotes that have potentially come into contact with the coronavirus, Western countries remain woefully behind not just in their response to the pandemic, but also in adopting digital payments. One silver lining to the COVID-19 crisis is that this may soon change,” Laboure said.