Grayscale Accumulates 150% of Newly Mined Bitcoins

Kevin Rooke, a researcher on Bitcoin matters, has gathered that Grayscale has acquired more bitcoins than what is currently mined. The amount when compared to newly mined bitcoins after the halving is 150% of it.

Grayscale Investments manages cryptocurrencies. The amount of Bitcoins it now has in its custody is 1.5 times the amount mined after the Bitcoin fork on May 11.

According to records made available to Kevin Rooke, Grayscale has an additional 18,910 BTC in its Bitcoin Investment Trust. On the other hand, miners have only created 12,337 Bitoins since May 11.

Changpeng Zhao, the CEO of Binance, tweeted about it this way: “There isn’t enough new supply to go around, even for just one guy”.

Grayscale Consumes the supply of Bitcoins

In an analysis, Rooke mentioned that Grayscale’s purchase of Bitcoin was between 33% and 34% of new BTC supplies from January to March and that was why it was able to get up to 60,762 BTC in 100 days.

More investments were also recorded on weekly basis to the tune of $29.9 million. This made it see an 800% increase in profits compared to the first quarter of last year.

The founder of Grayscale, Barry Silbert, responded to Rooke’s tweek by saying: “Just wait until you see Q2.”

Rooke’s latest discovery indicates that Barry Silbert may be right about his second quarter prediction as Grayscale now buys approximately 1,112.35 BTC daily. The average daily purchase was 607.62 BTC in the first quarter.

Grayscale throws some light on CBDCs

Grayscale says there is no similarity between Bitcoin and Central Bank-issued Digital Currencies (CBDC)

Here are his words: “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,”

In addition, he said:  “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.”

This somehow agrees with what the economist, John Vaz, believes is the reason behind the creation of CBDCs. John Vaz believes CBDCs were created to reduce the people’s interest on cryptocurrency.

Vaz said CBDCs are not really meant to help individuals but to make sure the country’s financial sector is favoured.

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