Twitter account dedicated to Bitcoin Rhythm pointed out in a tweet from Nov. 7 that the company’s Bitcoin buying rate will account for 16% of the total new Bitcoin per quarter after the block reward halving.
The event will see the amount of Bitcoin created with each new block cut in half.
Square’s mobile payments application Cash App will be buying 16% of Bitcoin’s (BTC) new supply if the company keeps buying at the same rate after the halfing if the price does not go up.
Future price changes not taken into account
He explained that, currently, Cash App is buying 8% of the new supply of Bitcoin per quarter and the production will be cut in half after what he calls “the halvening.”
Still, he admits:
“The halvening is NOT priced in.”
What he means with that last sentence is that his prediction does not take the positive effect of a lower supply of Bitcoin on its price which may, in turn, prevent the portion of BTC acquired by the company from becoming 16% of the newly mined coins. The prediction also assumes that Cash App will continue buying the same quantity of BTC in USD until after the halving occurs.
Cash App’s growing interest in BTC
As Cointelegraph reported earlier today, according to its Q3 2019 shareholder letter, Square’s Cash App reported $148 million in Bitcoin revenue. In October, the 18 millionth Bitcoin was mined, leaving only three million more to be created.
Bitcoin News Summary – April 1, 2019
Here’s what happened this week in Bitcoin in 99 seconds.
Wuabit crypto wallet will be accessible within WhatsApp. Bitcoin will be supported at launch, with altcoins set to follow. The wallet uses a simple and intuitive chat interface for transactions. This wallet has the potential to boost adoption, as WhatsApp has over a billion users.
Major Bitcoin investor, Tim Draper, met with Argentinian president, Mauricio Macri to discuss monetary matters. Draper bet Macri that Bitcoin will increase in value relative to the Argentinian peso. If Draper loses, he pledged to double the amount his fund is investing into Argentina.
Bitmain’s attempt at a listing on the Hong Kong Stock Exchange has expired unsuccessfully. Their bid was not approved within the 6 month window, despite the company disclosing its somewhat precarious financial situation. Bitmain also announced this week its forthcoming 7nm mining chip and the addition of a new CEO to its ranks.
ZebPay, formerly India’s biggest exchange, will now facilitate Lightning Network payments for all its clients. Using the ZebPay wallet, clients can send up to 10 Lightning transactions a day up to a current maximum value of 0.002 BTC, with all fees covered by ZebPay.
And finally, Bithumb suffered a major hack last week. The major Korean exchange had roughly $12.5 million in EOS and $6,000 in XRP stolen from its hot wallets. Bithumb suspended deposits and withdrawals as it investigates the matter alongside local authorities.