The debate against cryptocurrency has been ongoing for a few years ago.
Bitcoin’s meteoric rise in the financial industry has been evident but traditional finance economists and spokespersons in the space have often raised their voices against the largest digital asset.
Nouriel Roubini, as gone as far as to say, that Bitcoin would eventually be stemmed down to 0 dollars or USD.
With the current pandemic crippling the global economy, Bitcoin’s credibility as an uncorrelated asset took a beating. BTC witnessed a spike in correlation with the traditional asset class, such as the S&P 500, and exhibited a 48 percent crash on 13th March.
In spite of recent adversity, Kraken’s research believed that Bitcoin’s position in the economic landscape has only improved in the long term.
“It is possible Bitcoin is here to stay.”
The report suggested that by September 2019, around 81 percent of American’s had heard about Bitcoin, in comparison to 60 percent back in January 2018. The number of active wallets holding between 0.1 BTC and 1 BTC has also risen above 2.2 million at press time but being around 200,000 in 2015.
In terms of stability and security, Bitcoin’s hashrate has scaled over 950,000,000 percent from 2011 to 2020, confirming the solidity of the decentralized blockchain.
BTC was initially introduced to the world as an electronic peer to peer cash system but its investment functionality has engaged a different kind of market over the years. Bitcoin’s asset under management or AUM has improved over 10 times since 2016, scaling from a market cap of $190 billion to $18.9 billion USD. Over 61 percent of BTC users in the United States, held BTC as an investment asset.
Keeping these factors aside, the report suggested that the crypto asset contribution to career options has been significantly high as well.
The chart above suggested that the jobs generated around the world by the crypto ecosystem are legitimate. Over the last 4 years, the number of job opportunities with regards to bitcoin has improved by 1457 percent on Indeed.com.
The above statistics may imply that the asset class has matured over time and could be highly fundamental in changing the course of the current economic landscape.
Bitcoin’s coping well under recent hashrate drop
Bitcoin registered a massive hashrate drop on 25th March, as the rate dropped down to 75 TH/s from 113 TH/s. With concerns of miner capitulation creeping in, doubts were quickly brushed off after it was observed that the hash rate barely fell down on major mining pools.
The amount of BTC held by miners also remained fairly consistent without indicating any massive sell-offs.
Although, the possibility was high that individual mining pools did not exhibit a drop in hashrate because the miners were aware of a price dump post-halving, and hence they were trying to incur maximum profits before the event.
Energy influx by the Bitcoin miners was high as well, with the hashrate coming back above 100 TH/s at press time.