Four Unbelievable Stats That Will Make You Want to Trade Cryptocurrencies
Why has interest in cryptocurrency exploded in recent years? It’s simple: no other asset class has delivered such extraordinary returns. Cryptocurrency offers the opportunity to trade in an emerging asset class based on the most exciting and innovative technology since the Internet. To help better illustrate the value proposition of digital assets, let’s look at a few key statistics that explain the benefits and market potential of cryptocurrency.
Only 17-percent of Bitcoins are left to be mined — and it’s about to get a lot more scarce
One of the key attributes of Bitcoin is scarcity as only 21 million coins will ever exist. You may not be aware that the vast majority (83-percent) of those Bitcoins are already in circulation and the remaining few are about to become a lot more difficult to acquire.
That’s because the next “Bitcoin Halving” is scheduled for May 2020. These events, which occur roughly every four years, reduce the block reward miners receive by 50-percent. Currently, about 1,800 Bitcoins are mined into circulation every day. After the next halving event in 2020, only 900 will be produced each day.
With added scarcity typically comes more value, as buying pressure increases. Since Bitcoin’s value generally drives the rest of the market, this is an important development for traders. Crypto historians will note that the last two Bitcoin halving events (2012 and 2016) were shortly followed by bull markets.
There are more than 8,000 Ethereum nodes worldwide
Cryptocurrency began with a simple idea: peer-to-peer, trustless, digital cash transactions. Yet since the introduction of Bitcoin, the potential use cases for crypto have exploded in number. Consider the case of Ethereum, which aspires to be nothing less than a world computer. Hold on, you may ask, isn’t the Internet already sort of a world computer? That’s true, but the Internet lacks a critical feature that Ethereum possesses: decentralization.
Because the Ethereum network is decentralized, it can’t be shut down or censored. Users can make peer-to-peer transactions without requiring the services of a central authority or middleman. Developers can create decentralized apps in finance, gaming, social media and other categories. People can use the Ethereum network without worrying about websites and apps collecting and monetizing their data.
With more than 8,000 Ethereum nodes operated globally, Ethereum is one of the most decentralized projects in the crypto community and the leader in ecosystem development.
Bitcoin grew in value from $0.003 cents to $20,000 in seven years
That seems like a misprint, right? Yet it’s true. Bitcoins were worth less than one-third of a penny in 2010, before reaching $20,000 in 2017. Meanwhile, Ether rose in value from 48-cents in 2015 to $1,400 in 2017.
There’s really not much more to add except that these price increases were hardly outliers. The entire cryptocurrency market has experienced explosive growth over the last five years, gaining value faster than any other asset class in history.
$194 million in Bitcoin was moved for a one-cent fee
In October, 2018, a Bitcoin user sent $194 million in coins to another wallet. The cost? One cent.
Why is that a big deal? Cost efficiency and speed. A bank, operating on standard fees, would charge around $10,000 for this transaction. Additionally, sending funds across borders through the conventional banking system can take days or even weeks.
With Bitcoin, this transaction took around 10 minutes and cost one penny, powerful evidence of the value proposition of crypto. It’s highly portable, fast and inexpensive, compared to legacy options.
Bitvo is Canada’s leading digital asset exchange, offering low fees, high security and peerless customer service. With our commitment to transparency and high-quality trading services, we aim to make digital asset trading more accessible for everyone.