Week 15 - 2020 News Recap
COVID-19 Affecting Crypto Scammers’ Revenue
It appears that the COVID-19 crisis is not only affecting non-essential and essential businesses, but even scammers involved in schemes with cryptocurrency. According to the Chainalysis forensics firm, the Coronavirus pandemics are affecting crypto scammers as well, affecting their revenue. Starting from the beginning of 2020, the revenue generated by scammers operating with cryptocurrencies, dropping from 800,000$ as recorded in mid-January to 300,000$ with the start of April. The suspected factor that might have influenced the recent plummeting of revenue could be due to dramatic drops in the market at the start of the year. What appears to be the case is that scammers’ revenue is not affected by a decreasing number of scam victims.
Researchers believe that people would become more cautious due to pandemics, it seems that there are more vulnerable people during the crisis. That is how the number of cryptocurrencies sent to scam addresses spiked to an all-time-high for 2020 in April. Chainalysis claims according to their research, that the 33% loss in scammers’ revenue is related to the major market drop that happened with the Coronavirus outbreak. The market lost around 100 billion dollars. Consequently, the drop affected scammers’ revenue even though they could scam the same number of people month-to-month. The cryptocurrency they are receiving from scam victims is worth less due to the market drop.
Ethereum’s Vitalik Buterin Shares Two All-Time-Worst Bitcoin Price Predictions
Bitcoin is often an object of price predictions as the top and the most valuable cryptocurrency in the market. For that matter, predicting the future price of Bitcoin has become so popular that there are thousands of these “gems” being shared almost on a daily level – some of these BTC predictions are fairly absurd even, or better said, inaccurate. Vitalik Buterin, Ethereum’s creator, decided to pick and share two worst Bitcoin price predictions, starting from the original launching of BTC back in 2009. According to Vitalik Buterin, the most ridiculous bullish prediction shared on the price of BTC was made by John McAfee.
Back in November 2017, when BTC was approaching its all-time high of 20,000$, John McAfee predicted that the price of Bitcoin will reach 1 million dollars in 2020. Less than three years later, John McAfee claims that Bitcoin is worthless. The second inaccurate prediction that Buterin chose was the one made by the famous economist, Nouriel Roubini. Roubini claimed that Bitcoin was heading to zero when the crypto took a downward trend from 20,000$ to 7,000$ and below back in 2018.
Blockchain Smartphone “Exodus” to Mine Monero (XMR), HTC Announces
According to the announcement made by the famous and mobile phone company, HTC, the company will enable the users of the latest and the first-to-be-made blockchain smartphone to mine Monero (XMR). The announcement came on April 10th, while the company also shared that the application for mining should become available in the second quarter of 2020. The mining app for XMR via Exodus is made possible due to their partnership with Midas Labs, a Taiwanese ASIC chip company, The application will be called DeMiner.
Decentralized chief officer at HTC, Phil Chen, claims that mobile mining is an important part of development when it comes to securing crypto networks. Moreover, the HTC executive also claims that giants in the world of cryptocurrency mining pools are dominating the market. He firmly believes that mobile mining with DeMiner could help democratize the market of mining, that way eliminating the issue of competitiveness. HTC’s Exodus was the first smartphone based on blockchain and was released in 2019. Exodus can run a full Bitcoin node on the phone.
Upcoming Halving is Affecting Miners, BTC Price Related to Hash Spikes
With the latest data, the hash rate increased by over 33% between April 4th and April 6th, compared to data recorded on March 23rd when the hash rate was hit by a major drop. Following up with historical value, it becomes evident that hash rate metrics are related to the price movement of Bitcoin. In theory, the hash rate followed the value of Bitcoin and the price movement which is no wonder since rewards for miners are proportional to the value of the crypto in the market. Ashu Swami, the former vice president of program trading at Morgan Stanley and the current chief technology officer of digital marketplace Apifiny, claims that in some cases, as well as in the current case, hash rates tend to recover ahead of the price recovery.
Logically, the price of Bitcoin affects the hash rate to rise in case the price is following an upward momentum. Moreover, 60% of global mining comes from China, where most activities were forced to a stop due to the most recent crisis with the initial epicenter in China. That case might also be the reason for the dropping hash rates noted on the Bitcoin network. With the spike in the price, there usually comes a spike in hash rates due to the increasing number of miners who can profit from the rising prices.
Bitcoin Cash (BCH) Post-Halving: Hash Rates Going Down
Less than a day after BCH halving went through, the hash rate started to drop, which consequently slowed down the generation of new blocks on the network, since the halving took 50% off the mining rewards, it is a logical outcome to have miners leaving the mining of BCH for more profitable options such as Bitcoin for instance. Arcane Research published a report on April 1st, where the researchers expressed their concerns that BCH hash rates could also be halved with the halving of BCH mining rewards.
BitMEX Research tweeted about the post-halving situation, stating on the popular social network that there hasn't been any new blocks generated on the network two hours into the post-halving period. BCH went through significant rises in the past week, rising by over 17%, however, the currency dropped by 2.5% in a single day since the halving. Bitcoin is also expecting halving, scheduled for May 14th. The next halving for Bitcoin Cash, though, won’t take place before 2024.