BitDigest May 6 · Issue #652
- Bitcoin trading above $9,000 level as dominance continues to increase
- ECB publishes report warning of risks posed by stablecoins to global financial stability
- Former head of PBoC says Chinese digital currency release is imminent
Count Down to Halving
Although miners activity supporting bitcoin is remaining strong, bitcoin’s hashrate has declined slightly over the past day. This could be due to several factors including miners taking down rigs to install the newer units which are finally being delivered after COVID-19 delays.
Technical Roundup Insight
Technical Roundup suggests that bitcoin has broken out of its monthly range but is highlighting resistance at $9240. Acceptance of the resistance would suggest a test at $10700 levels or a failure could lead to pullback to time-supported $7700 – 7800 levels.
Impact on the Bank Note Printing Sector
I spent the first 15 years of my professional career in the pulp and paper industry so I read reports that paper currencies were spreading the coronavirus with great interest. I have done some research into the potential impact on the banknote printing industry and my contacts tell me that there has been no slow down. DeLaRue one of the leading suppliers to the bank note printing industry tweeted yesterday that “In…instances when we see a forced disruption to the cash cycle, cash usage ultimately returns to it’s original trajectory. With the UK in lockdown it’s interesting that cash usage is as high as it is and climbing again.”
Another company told me that there has been no slowdown in machine orders, and that bankers have a very long term view when it comes to currency printing.
Both companies admit that digital currencies are a much greater threat than the coronavirus and are watching cryptocurrency developments with great interest. While reports say that over 90% of the world’s currency is already digital, DeLaRue reports that we are still in a “cash based world with cash accounting for 8.5 out of every 10 payment transactions worldwide” and “the amount of bank notes in circulation has grown 5% over the past five years.“
The surprise to me has been that physical book sales and the related paper supply to the publishers is having a much greater decline due to the pandemic today.
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