No doubt bitcoin has been moving through hoops and tunnels since the coronavirus took hold of the global economy, but thanks to companies like Grayscale, it doesn’t look like the currency is about to lose its steam anytime soon.
Grayscale Is One of Many Companies Supporting BTC
Back in March, the currency saw its price fall into the mid-$5,000 range. This was after it had spent the whole previous month trading for well over $10,000, a price the currency hadn’t seen in roughly half a year. From there, however, things got a lot worse, with the currency eventually falling into the $4,000 and the $3,000 ranges until finally settling between $6,000 and $7,000 for the next month. By late April, the currency had spiked back into the $8,000 range and then $9,000 came just before May’s highly anticipated halving event.
Throughout this whole period, the bears have been quick to assume that bitcoin’s death will occur thanks to the growing cases of COVID-19, and each time, they’ve been dead wrong about what’s to happen. Bitcoin has come up short several times in the past three months – no doubt about that – but its resilience and strength have been at the forefront of the financial ladder and have proven time and time again that the currency is something outside negative forces shouldn’t try to manhandle too long.
This time around is no exception. Bitcoin recovered from March’s drops and regained most of what it had lost in approximately two months, a record for such a boost, though to be fair, bitcoin doesn’t quite accomplish all these feats on its own. It’s got an entire plethora of companies, platforms and crypto-based enterprises backing up and supporting it, which explains why it’s often able to come back so quickly.
One of those companies is Grayscale, an institutional investment firm that seeks to give professional traders access to both bitcoin and Ethereum-based investment trusts. Since the halving alone, Grayscale has bought up at least 19,000 separate bitcoin units for its investment trust, bringing a whole new wave of new bitcoin units to the playing field.
In addition, the halving has also caused a decrease in mining. Less professional miners have seemingly dropped off the map now that the mining process has become less profitable (bitcoin rewards fell from 12.5 BTC to about 6.25), but those that really know what they’re doing have stuck around, giving bitcoin a stronger level of legitimacy.
Lower Mining Rates Are Also Helping
Rui Shi – CMO of mining firm Bit Deer – explained in an interview:
The dream of independent mining has died along with ICOs. Today’s bitcoin miners have taken it to new heights that rival Amazon’s AMZN AWS. Massive data centers that achieve much greater efficiency with the economy of scale sprawl throughout the world using the leftover energy produced by renewable energy to provide a decentralized economy that’s disrupting the entire finance industry.
