Modified Crypto Update March 9th 2021
Modified News by Slightly Modified
“The World’s first widely-adopted cryptocurrency. Bitcoin allows for secure and decentralized digital money that people or entities can send to each other on the internet.”
Unlike payment services like Venmo and Paypal that rely on financial systems permission to transfer money. Bitcoin is decentralized so there isn’t a need for a bank or financial service to transfer the money it is tracked on the blockchain, which is similar to a bank ledger. Where all transactions are record but the identities are kept encrypted and completely secure from decoding the identities of the transactions.
Due to it’s decentralization and blockchain ledger being distributed across the entire network. No ONE company, country, or third party is in control of it. Even though social media has gained so much power that big names like elon musk and Goldman Sachs can manipulate the market just by one tweet but hey most people are getting even too smart for that.
What can bitcoin benefit or function as:
- An Investment
- A Storable value similar to gold
- A way to transfer value around the world
- Explore and emerging Technology
Bitcoin has money properties but it isn’t money it is digital since there is no physical version of it. If Gold was still the standard for the dollar it would be like this however inflation brought that out of existence. So I don’t really see the difference since most people have their dollars in a digital bank account. I can do the same. I can exchange my BTC to an ATM and collect any physical currency I chose so i think that statement these days is sort of invalid.
“Anyone can view it, NO single entity controls it” – Coinbase
Fun Fact: Attacking the Bitcoin blockchain would cost $4+ billion in hypothetical hardware costs alone.
Coins are created through a process called mining termed “mining rigs” which now use far more processing power then they did back in 2017. Most miners are corporations. The mining process performs equations required to verify and record a new transaction, in which the miner gets a small percentage of the transaction, ensuring the accuracy of the ever-growing ledger. These mining rigs compete acrossed the world to be the first to solve a math problem.
Each person who joins the bitcoin network is issued a public key, a long string of characters, numbers & letters. When you buy bitcoin or send/receive it. You get a public key which you can think of as a key that unlocks virtual vaults (wallets) that gives you access to your assets. Anyone can use said public key to send you bitcoin but only the holder of the private key can access the vault or wallet.
Bitcoin Halving, What is it?
“Every four years, the amount of bitcoin awarded to miners is reduced by half, until all 21 million bitcoin have been virtually mined (probably around the year 2140). The halving mechanism helps make bitcoin a scarce, inflation-resistant resource.”
Though Bitcoin and other Cryptocurrencies are digital money, it cannot be created infinitely. Scarcity and value have a direct coorelation. There will only ever be 21 Million Bitcoins and the amount of New Bitcoin added to the Network will be reduced by Half every four years this is part of a 2 concept protocol keeping an inflation-resistent asset.
In 2021, it will drop to around 3.125 new bitcoin added to the network every ten minutes. This process will continue until ALL bitcoincs are mined which is estimated to happen around the year 2140.
Why is Halving Important and How does it work?
Issuing less of anything analyzing and creating marketing supply and demand by creating fewer bitcoin over time is a great way to keep the value up and deviate from inflation. Rather an increase in value and decrease in supply will only create more market value and exand it’s buying power over time.
As it is compared to Gold and called a Digital Gold, it does differ that it can be sent as easy as sending an email or SMS text messsage. It’s known value and availability is known and acccessible to everyone. Gold is still found every day throwing unpredictable supply schedules, bitcoin is finite. Almost seems Gold is more valitile than bitcoin in some ways.
Important Takeaway: It’s impossible for more bitcoin to be mined (when all has been claimed) to ever exist. This is far from how fiat currencies work as money is printed at the discretion of the governing officials or central bank, potentially leading to inflation.
“Dollar–cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.” – Investopedia
I am by no means a finance expert or even close to, I am an inspiring Software Developer and Innovative Person. I am just writing blogs as I research and stay up to date with News, Trends, and What my opinion is and that IS ALL! Take what you will I am by no means giving advice. Other than please don’t invest in risky stuff if you aren’t willing to lose that money.
Happy Days and have a wonderful Valentines Day, Good Luck on your Ventures!
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