Bankers switching to crypto careers for higher salaries and industry growth

cyptouser8 months ago (01-26)Cryptocurrencies News144

Crypto firms are attracting top talents from the traditional financial sector in droves thanks to higher salaries and the prestige of working in the emerging industry.

A Bitget report shared with CyptoRanking showed that one-third of applicants for crypto positions have a background in banking and traditional finance.

“33% of the exchange job applicants previously worked in banking…23% of [these] candidates apply for KYC Manager, Compliance Associate, Senior Compliance Associate, and AML Analyst,” Bitget stated.

The influx of these financial professionals into the crypto space gained momentum within the past year as the value of digital assets surged. This trend was also observed during previous crypto market booms, where seasoned executives and recent graduates moved into the industry.

Industry observers interpret these workforce dynamics as indicative of the maturation of the digital asset sector. Notably, major global banks such as JPMorgan Chase, Barclays, and HSBC are exploring ways to integrate blockchain technology into their services, further underlining the evolution of the financial landscape.

Beyond the banking sector, the crypto industry has witnessed a 180% increase in applications from professionals from diverse sectors.

Why banking talents are attracted to crypto jobs

The exchange attributed the high migration rate to several factors, including high salaries, industry prestige, growth opportunities, and the crypto industry’s flexibility.

Bitget explained that a critical catalyst for this talent departure from traditional banking lies in the salary adjustments banks make in response to remote work conditions. As banks reduce salaries, a brain drain effect has ensued, prompting a reevaluation of hiring strategies and compensation structures within the industry.

In contrast, crypto firms not only offer competitive salaries for equivalent roles but also provide the flexibility of remote work. Notably, 36% of blockchain-related roles worldwide were remote-based in 2022.

For further perspective, junior engineers in banks typically earn around $87,810, while their counterparts in crypto startups command an average of $125,000. Similarly, the average salary offered by crypto firms, $ 115,667, significantly surpasses the $54,000 traditional banks offer.

Gracy Chen, Managing Director at Bitget, characterized the trend as a substantial shift in the labor market.

Chen suggested that as crypto gains momentum and decentralization transforms traditional banking, this shift might catalyze increased mergers and acquisitions, influencing job dynamics and reshaping the overall labor market.

Author

Oluwapelumi Adejumo

Journalist at CyptoRanking

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

@hardeyjumoh LinkedIn Email Oluwapelumi Editor

Liam 'Akiba' Wright

Senior Editor at CyptoRanking

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CyptoRanking. He believes that decentralized technology has the potential to make widespread positive change.

@akibablade LinkedIn Email Editor

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Cambridge Bitcoin Energy Consumption Index lowers estimate by 14%, revises methodology

The Cambridge Bitcoin Electricity Consumption Index (CBECI), which tracks global Bitcoin energy consumption, has undergone its first major update since 2019, influenced by evidence pointing to frequent overestimating Bitcoin’s electricity usage.

A new report is said to shed light on the evolution of Bitcoin mining and to clarify the rationale behind the changes in CBECI’s methodology, providing an in-depth analysis of the transition of Bitcoin mining hardware – from CPUs to GPUs, then FPGAs, and finally to the current state-of-the-art ASIC miners.

Mining efficiency evolution.

The CBECI noted that the efficiency of ASICs experienced a rapid surge initially but has since seen a tapering in growth as we reach the limitations of semiconductor technology. This slowdown has direct implications on the lifespan of miners, affecting the assumed replacement cycles, with estimates ranging from 1.5 years (academia) to 3-5+ years (industry).

Its methodology has been revised to account for this increased computing power of newer models, such as the Antminer S19 XP, which boasts a 140 TH/s capacity compared to the 11.5 TH/s of the 2016 Antminer S9.

CBECI further asserted that the introduction of ASICs triggered an exponential growth in Bitcoin’s hashrate, from less than 1 EH/s in 2010 to over 300 EH/s in early 2023, revolutionizing mining from a home computer activity to a professional endeavor.

Hashrate growth.

While a higher hashrate enhances Bitcoin’s security, it also escalates mining difficulty and the computing power necessary to earn block rewards. Comprehending these drivers of hashrate growth was reportedly crucial to reevaluating the CBECI methodology.

According to the report, investigations into hashrate growth factors revealed a strong correlation between the increase in imported mining hardware to the US and the overall network hashrate growth. Additionally, sales data from Canaan Creative indicated that their latest models accounted for nearly 45% of their hashrate sales in 2021, suggesting that these more efficient models likely contribute more to hashrate growth than previously assumed by the CBECI methodology.

Upon applying the new CBECI methodology, the 2021 estimate was significantly reduced by 15 TWh, or 14% (from 104 TWh down to 89 TWh), and the 2022 estimate was cut by 9.8 TWh, or 9% (from 105.3 TWh down to 95.5 TWh).