Japan Can Have More Than 3M Crypto Traders, FSA Says

As of the end of March, 142 000 people in the country are investing in crypto-margin positions and futures
10 April 2018   508

The Financial Services Agency of Japan (FSA) for the first time published official statistics on cryptocurrency trading. Judging by the data collected on 17 trading floors, as of March 31, at least 3.5 million people in the country are engaged in digital assets trading. This is reported by Coindesk.

Among them, traders under 30 years old make up 28%, up to 40 years 34%, and up to 50 years - 22%, respectively. It is noted that the publication of this data was the next step of the FSA on the way to increasing the transparency of the local crypto exchange industry after the of more than half a billion dollars stolen from the Coincheck exchange.

In addition, according to the regulator, as of the end of March, 142 thousand people in the country are investing in crypto-margin positions and futures.

It is noteworthy that the annual trading volume directly by bitcoin increased from $ 22 000 000on March 31, 2014 to $ 97 000 000 000 in 2017. At the same time, trading in margin, credit and futures positions on bitcoin increased from $ 2 000 000 in 2014 to $ 543 000 000 000 only in 2017.

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   63

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.