Grayscale Investments, Accumulating Bitcoin at the Rate of 1.5 Times the Amount of BTC Being Mined
May 28, 2020 11:26 am
Kevin Rooke, an independent researcher estimates that since the May 11 block reward halving, Crypto fund manager, Grayscale has sped up its Bitcoin collection to the rate of 150% and investing in the new coins created by miners.
Per the data issued by independent crypto researcher Kevin Rooke, Grayscale has added 18,910 BTC to its Bitcoin Investment Trust after the halving, while only 12,337 Bitcoins have been mined following May 11.
Binance CEO Changpeng Zhao reposted the chart, stating:
“There isn’t enough new supply to go around, even for just one guy”.
Grayscale Purchasing Nearly Double the Number of Bitcoins
Rooke estimated last week, that Grayscale had been buying BTC at a rate equal to between 33% and 34% of new supply during the first quarter of 2020, having acquired 60,762 BTC over 100 days. Throughout the quarter, Grayscale also observed average weekly investment into its trust reach $29.9 million, covering an 800% gain year-over-year.
Grayscale founder Barry Silbert commented “just wait until you see Q2”, in acknowledgement to Rooke’s tweet publishing the figures.
According to the latest data of Rooke’s indicates that Grayscale is now purchasing nearly double the number of coins per day on average, with his post-halving estimate equating to 1,112.35 BTC per day, up from 607.62 BTC during Q1.
Grayscale Report on CBDCs
Per the Grayscale Investments latest reports, the firm sought to rebuke analogies comparing Bitcoin to Central Bank issued Digital Currency (CBDC) and the report stated:
“CBDCs are sometimes viewed as synonymous to, or as replacements for, digital currencies like Bitcoin, but they represent a meaningful departure from the decentralized protocols inherent to many cryptocurrencies, CBDCs attempt to upgrade payment infrastructure while Bitcoin is an attempt to upgrade money. If CBDCs gain traction, they may actually bolster the value proposition for Bitcoin and other digital currencies,”
The report repeated the sentiment of economist John Vaz, who recently said that CBDCs comprise “a kind of rearguard action being fought by the central banks because they don’t like cryptocurrency” and Vaz perceived, “Central bank digital currencies are probably more about tracking money than providing benefit.”