Australian Fund Manager Estimates 50% of BTC Mined in Q1 was Consumed by Square’s CashApp, Grayscale May 7, 2020 May 7, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsMay 7, 2020 by Kelly Cromley

Australian Fund Manager Estimates 50% of BTC Mined in Q1 was Consumed by Square’s CashApp, Grayscale

Grayscale, the popular crypto asset manager, and Square’s Cash App, took in more than 50% of freshly rewarded Bitcoin (BTC) in the first-quarter of 2020, as per a recent report.

Through a tweet, Australian fund manager ListedReserve revealed the math used to arrive at the aforesaid conclusion.

ListedReserve basically used two measures namely Grayscale’s inbound flows into its Bitcoin and Ethereum Trusts in the first-quarter, which tantamount to $388.9 million, and Cash App’s $306 million revenue generated from the sales of the numero uno currency, in terms of market cap, in 1Q20.

The figures mentioned above were divided by the total value of BTC issued (mined) as rewards in the first-quarter, calculated to be $1.30 billion, on the basis of average Bitcoin price of $8.068.

The outcome of calculation indicated that Grayscale and Cash App disposed roughly 29% and 23%, respectively, of the freshly mined Bitcoin in the first quarter of 2020.

An executive of ListedReserve detailed as follows:

“The point is how they are increasingly consuming a larger portion of available supply.”

He further said:

“So assume demand stays constant, they would be buying more Bitcoins in a quarter than are mined in a quarter which means other hodlers would have to be selling, which, of course, they do”.

When queried the impact it could have on the cryptocurrency sector, a spokesperson of ListedReserve answered:

“It’s incredible. Two U.S. entities are consuming over half of the new supply. So not including Coinbase/Binance/Bitfinex/OKCoin and every other exchange around the world most of the mined Bitcoins are accounted for. What is going to happen after the halvening when the new supply each quarter falls by half?”

A similar sentiment was expressed by Alistair Milne, a top Bitcoin investor, who tweeted:

“So, what happens in less than 5 days if two entities are already buying 52% of all #Bitcoin mined?”

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.