BTC halving has created another round of excitement among the traders/investors when it comes to new investment solutions. Now, the 11 years old decentralized concept of money is becoming noticeable and gaining demands in the mainstream population.
Noticeably, the third BTC reward having has also instigated a sense of new learning about the cryptocurrency markets/decentralized digital money which in turn giving rise towards their adoption.
The new and old traders/investors are also becoming more aware and cautious when it comes to the security of their digital assets. The heightened demand for digital assets has also created a level of responsibility among users. Meaning, the users are trying to safe their cryptocurrencies as per their knowledge and exchange credibility.
Reportedly, $220 million of Bitcoin (BTC) has been removed from the cryptocurrency exchanges since the halving event took place. The users are looking forward to saving their digital assets in different forms as they are seeing the cryptocurrency as a store of value and taking actions to keep their assets at a safe and secure place.
Glassnode Studio– the on-Chain data and intelligence platform has mentioned in its latest report that pre and post BTC halving has impacted user’s behaviors to a large extent and cryptocurrency exchanges net flow has decreased significantly.
Users Diverging to Secure Storage
The decreased net flow of the crypto exchanges suggest two important points:
-The users are getting aware of the security measures and in turn, avoiding trustworthiness on the centralized digital exchange platforms because of the past hacking events.
-Now, users have started taking the responsibility of their cryptocurrencies and trying to move the digital assets in the wallets they control. They are seeing BTC as a store of value and treasurable assets instead of assuming the regular trading asset.
As per the information, since BTC reward halving took place which reduced the block reward from 25 to 12.5, about 24000 Bitcoin have been retracted from the exchanges. The movement of withdrawing BTC started in mid-April and continued till Halving.
Moreover, it has seen that since March 12- Black Thursday, the wallet of crypto exchanges has observed the drop of BTC in numbers from 2,634,574 to 2,332,524. Meaning, 3,02,050 BTC in just months of span have removed and stored in the personal wallets.
Chainalysis Report- Rising Crypto Hack
The crypto data analysis firm Chainalysis has shown through its research and case studies in the 2020 Crypto Crime Report that crypto hacks have heightened and set the new records in 2019.
During 2019, there were almost 11 attacks had seen on cryptocurrency exchanges, as per the report. In the past two years over $1.1 billion in crypto has vanished from the exchanges due to the security breaches.
However, these hacks are not close to those heists which happened last year in Coincheck- $534 million, and in 2014 Mt. Gox slashed by $473 million.
Skeptical State of Crypto Holders
The new nature of finance, i.e., cryptocurrency is representing a significant innovation over a traditional form of finance. However, this new digital money also brought alarming issues in front of people.
The cryptocurrency community is getting nervous when it comes to security.
The holders of crypto assets have started questioning the exchanges credibility and the onus these exchanges have on a large number of investors.
Bitcoin’s unofficial twitter profile which has over 1 million followers is clearly showing the resentment of the crypto community over the existing crypto trading and custodian platforms.
Bitcoin’s Rising Adoption
Despite the security issues and high market, volatility Bitcoin is still gaining its adoption and making its network strong more than ever before.
During the Bitcoin Halving 2020 phase, the number of BTC addresses has also increased. Reportedly, over 1 million new addresses have formed for the third time. Earlier, this significant attraction towards the new money has noticed in Dec 2017 and in June 2019.