Image taken from news.bitcoin.com article
Cases of Fund Managers buying up more Bitcoins than what’s created in fresh supply!!
There has been news of Grayscale buying up bitcoins that is 150% more than what’s been created since halving!! Earlier this crypto fund managing institution used to purchase just 34% of newly supplied Bitcoins.
https://cointelegraph.com/news/grayscale-is-now-buying-15-times-the-amount-of-bitcoin-being-mined
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According to the above article, post halving Grayscale has put 18,910 BTC into its Bitcoin Investment Trust , when only 12,337 BTC have been actually freshly minted during this period.
So, buy Bitcoins before there are supply scarcity issues!!
Image taken from this Finance Magnate Article
This obviously signifies huge demand for Bitcoins from institutional investors and it should prompt us to buy how much ever Bitcoins we can afford right now because of the possibility of there being less supply of Bitcoins to match up demand, with whales buying up so much of Bitcoins than what is actually being freshly created.
There is more to this ‘Bitcoin buying now’ logic!!
Image taken from this news.bitcoin.com article
However, there is more to this, let’s delve deeper to understand why buying Bitcoins now rather than later, out of FOMO, is a smart move. There is a matter of owning Bitcoins of real value now, that would eventually benefit you due to the price appreciation factor of course!!
There are benefits for Crypto Exchanges in having their own mining pools!!
Image taken from this cointelegraph article
There was news, before the Bitcoin mining halving happened this year of Binance launching its mining pool, remember?. Already exchanges like Huobi and Okex have their own mining pools and this is interesting, I would explain why.
Perhaps this is required, as crypto exchanges need access to a constant supply of fresh Bitcoins to meet demand of customers and having mining pools gives them access to Bitcoins that are brand new. I am emphasizing on terms ‘fresh’ and ‘brand new Bitcoins’, but would come to that subject a little later.
Therefore, with so many Bitcoins being brought up by Fund Managers, some Crypto Exchanges have taken steps to ensure they get access to constant supply of Bitcoins by having mining pools of their own...wow!!
Obviously this would result in these crypto exchanges having more liquidity to cater to Bitcoin traders, that’s great surely.
Premium value attached to Brand new ‘Virgin Bitcoins’
Image taken from this Cointelegraph article
Now, do you know there is a value attached to brand new Bitcoins, they are freshly minted Bitcoins that have ever been transacted, thus are termed ‘virgin Bitcoins’ , ‘white’ Bitcoins.
Institutional Investors would pay a premium to acquire ‘White’ ‘virgin Bitcoins’
The reason institutional investors would pay a premium to own these Bitcoins is because, Bitcoins that have been transacted and used have their history of transactions recorded on Blockchain. In case, these Bitcoins were transacted for something illegal, their value is not assured, they can be confiscated by the Government. Ouch!!
Owning up ‘clean’ , ‘virgin’ Bitcoins for easy assurance of regulatory compliance
Image taken from this news.bitcoin.com article
Therefore, with strict regulations in countries like the US, institutional investors prefer owning up assuredly clean Bitcoins, that don’t have any dark history , this way they can be regulatory compliant with the Government!!
Retail Investors beware - Just HODL your Bitcoins for now, it’s precious...
In this light, it’s quite interesting that crypto exchanges like Binance, Huobi and Okex have access to virgin Bitcoins, thanks to their own Bitcoin mining pools!! Aha!! And haha too since I have no idea if I own virgin Bitcoins or not and I can’t afford to buy them paying a premium.
However, I definitely don’t want to sell the limited amount of Bitcoins I HOLD now for dear life. I think it’s getting more precious and precious, and the chances of buying these Bitcoins that may be used having a dark history will be more if you buy it later and later when Bitcoins are in short supply and used Bitcoins are in market circulation out there.
