Bitcoin is becoming scarce as BTC Miners sell less BTCs
- 31st August 2020
- Posted by: Hakeem
- Category: CryptoCurrency
The recent adoption of the world’s flagship crypto asset by some institutions and many retail investors has given BTC miners incentives to start hoarding Bitcoins.
Taking a critical look at wallets or addresses belonging to Bitcoin miners via Glassnode analytics, Nairametrics found out that most BTC miners haven’t been selling their cryptos, despite BTC’s price gaining significant value since the third halving.
Glassnode analytics also revealed that BTC miners currently hold more than 1.8 million BTC, recording the highest amount held by miners in over two years. Same as BTC investors, miners have decreased the sell-offs.
This macro stated above makes a solid case for Bitcoin bulls because BTC miners typically sell their BTCs to cover operational costs like electricity bills, and computing hardware. Even though the price of Bitcoin has gained more than 35% since the most recent halving, BTC miners now prefer to hold their BTCs for now. This means that BTC supply is tightening, as miners refuse to pump their coins into the crypto market.
What you should know: BTC miners help in facilitating BTC transactions and providing security on the blockchain network. The importance of BTC miners can’t be underestimated as they perform these functions, by solving computational tasks which permit them to chain together blocks of transactions.
Bitcoin mining involves the act of solving tasks that come in the form of algorithms in affirming a transaction and fixing it within a block on the blockchain.
By mining BTC, you can earn a BTC without having to pay money for such. BTC miners collect BTC as a reward for completing “blocks” of confirmed transactions which are added to the blockchain network.