20% of total Bitcoin mining commission fees are collected by exchanges. The information was provided by the Newsbtc portal, which highlighted the current impact of exchange portals.
In this way, centralized firms accumulate less and less percentage of the money in Bitcoin that miners generate. This trend is stimulated by the progressive massification of the pioneer cryptocurrency.
In this sense, the portals dedicated to the exchange of cryptocurrencies will cease to be one of the main forces in this field. In other words, they will already give up the space they occupy next to the Bitcoin mining pools in the receipt of fees.
20% of Bitcoin mining fees
Over the course of the past few years, the percentage of Bitcoin mining commission fees, accumulated on exchanges, has decreased significantly. This is due to several important factors.
The most prominent of them is that people, especially businesses, are beginning to accept cryptocurrencies as a form of payment. This is expressed in that, for certain purchases, it is no longer necessary to exchange bitcoins for fiat currencies to make payments.
To the same extent that adoption of digital currencies increases, the percentage that remains in the power of exchange platforms will decrease. This, of course, does not mean that exchanges are doomed to disappear.
A percentage cut doesn’t mean less revenue
Despite this progressive percentage decrease in the amount of fees, the least exchanges have is concerns about it. This is explained by the general trend of the price of Bitcoin, which is upward.
This means that a higher percentage today may equal less money than that obtained in a few years for a lower percentage. In other words, if the price of Bitcoin rises at a faster rate than the percentage decline, there are still gains.
This is the secret of the success of the large cryptocurrency exchanges despite covering less fees for commissions emanating from Bitcoin mining.
Positive and negative aspects
The aforementioned situation can be interpreted according to two points of view. The first, that of exchanges, for whom it is positive. The second, for the Bitcoin community in general.
In the first case, the fact remains that the businesses related to Bitcoin mining are profitable and stable. In the second aspect, the cryptocurrency becomes an instrument to which full use is made of its qualities as a means of exchange of goods.
But at the same time, there is a negative side. It is that exchanges continue to keep a good part of what is generated by Bitcoin mining in the form of fees. This makes them centralized instruments that, like banks, use cryptocurrencies to speculate in the exchange market.
Crypto activity distances itself from exchanges
Another point of view that is important to analyze is the case that in certain periods of time, the price of Bitcoin stagnates or falls back. As long as this happens, and the use of cryptocurrency continues to diversify, under these conditions, if one can speak of a loss of dominance by exchanges.
Precisely, a study by the analysis firm Glassnode, shows that the use of BTC and therefore the rates of Bitcoin mining, takes distance from the exchange platforms.
Bitcoin exchanges between people, apart from exchanges, continues to gain momentum. This trend would end up marking a new stage for cryptocurrencies in general by not depending on third parties to carry out transactions.
Data to take into consideration
- Glassnode study shows that exchanges receive a lower percentage of fees for Bitcoin mining commissions.
- Decrease in percentage does not necessarily mean money losses, due to the historical uptrend of Bitcoin.
- The greater use of Bitcoin by people, allows that the exchanges are not a mandatory alcabala for transactions.
The information in this content has been extracted from reliable sources detailed below.:
1- Professional handling of content by the authors of CriptoTendencia.
2- External sources: Glassnode.com and Newsbtc.com.