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What is the Halvening? (Hint: It’s a BIG deal)

For crypto enthusiasts, the Bitcoin “halving” is a big deal. There are countdown clocks and endless predictions and analyses, all leading up to a critically pivotal event for Bitcoin. While the “halving” has an ominous tone, it’s actually a rare event in the cryptocurrency world. So, what is the halving? And why is it so […]

The post What is the Halvening? (Hint: It’s a BIG deal) appeared first on Bitcoin IRA | Official Bitcoin Retirement Account Investment.

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For crypto enthusiasts, the Bitcoin “halving” is a big deal. There are countdown clocks and endless predictions and analyses, all leading up to a critically pivotal event for Bitcoin. While the “halving” has an ominous tone, it’s actually a rare event in the cryptocurrency world. So, what is the halving? And why is it so important?

The halving cuts production of Bitcoin in half

Part of Bitcoin’s brilliance is the system in which Bitcoins are released into the market. A block is produced approximately every 10 minutes, awarding a specific number of bitcoins. At its origin, one block produced 50 Bitcoins.
This system changes after every 210,000 blocks is released. Approximately, this comes out to every four years. After each set of 210,000 blocks, the number of bitcoins awarded in one block is cut in half—or, the halving.

Halving production slows the rate of inflation

This halving slows the rate of inflation of Bitcoin. And in 2020, Bitcoin’s inflation rate will fall to 1.8%—below that of the U.S. dollar.

The halving event, occurring on a regular, predictable schedule, removes a lot of uncertainty that plagues the traditional market. At the same time, it creates more scarcity over time. As demand continues to increase, supply continues to decrease. While these values will remain constant and predictable, it’s worth noting that the supply of the U.S. dollar has nearly tripled in the last 20 years.

Bitcoin was built by its mysterious creator, Satoshi Nakamoto, in part as a rebuke to the role governments and financial institutions play in controlling the value of their currency. It is believed that Satoshi Nakamoto is a staunch libertarian, and that Bitcoin was perhaps created as a response to the 2008 financial crisis.

In a state-issued currency, supply can vary with the economy. For example, the U.S. Federal Reserve can add or remove dollars from circulation on an as-needed basis to respond to economic indicators. This can cause frequent inflation and deflation of the value of the dollar.

However, Bitcoin not only has this schedule set, but there will only ever be 21 million Bitcoins in existence. Once the last one enters the market, there will be no more. Because there is a limited supply, a Bitcoin is more like a gold bar than a dollar bill.

Gold, for example, has defended itself as an international store of value and medium of exchange for over 6,000 years. However, unlike gold, Bitcoin can be exchanged effortlessly and doesn’t impose much of a physical burden to transport or store.

Anyone can do the math: Slow inflation rate + predictable schedule + limited supply = a winning combination.

The history of Bitcoin’s halvings

Based on the halving schedule set forth at the beginning of Bitcoin, these events have occurred approximately every four years:

  • 2009: Blocks 1-210,000 received 50 BTC
  • November 8, 2012: Blocks 210,001-420,000 received 25 BTC
  • July 9, 2016: Block 420,001-630,000 received 6.25 BTC
  • May 12, 2020: Blocks 630,001-740,000 will receive 6.25 BTC
  • 2024: Blocks 740,001-950,000 will receive 3.125 BTC
  • ~2140: All 21 million bitcoins will enter into the market

 

Historically, the halving triggers a bull run

Historically, the halving event has triggered a bull run—it reduces supply. And as you can see in the previous halvings, they have each preceded a meteoric rise in price. However, it’s important to note that this increase is merely a correlation, and we are not 100% certain that these increases are a direct result of the halvings.

Additionally, these major increases did not occur overnight. The dramatic price increases occurred over the course of several months following the halving. While this historical data is important as you determine your own investment decisions, keep in mind that each halving event will be different.

Bitcoin continues to grow in popularity, and in the last few years, it has become a household name. As these events gain more widespread media coverage, the perception of Bitcoin’s value and its recognition will continue to change rapidly.

This type of awareness and media coverage alters analysts’ predictions. Because a large spike will be anticipated following a halving, this could lead to major increases in purchases just before the halving occurs—this could spell different results than the previous events have yielded.

The future of halvings

In 2009, Bitcoin essentially existed within the confines of an esoteric community of programmers and innovators. In 2012, Bitcoin started to gather enough users to make transacting a somewhat viable option. In 2016, Bitcoin was still steadily growing, but far from its popularity today.

Today, Bitcoin has already experienced enough bull and bear markets, massive trading spikes, international regulatory attention, and media coverage to make the 2020 halving a major point of focus.

As Bitcoin marches, slow and steady, toward its destination of releasing all 21 million bitcoins into the market around the year 2040, each halving will have significant consequences for the value of Bitcoin. And with each event, we will gain a deeper understanding of the true penetration of Bitcoin as a digital currency and its value in the market.

The post What is the Halvening? (Hint: It’s a BIG deal) appeared first on Bitcoin IRA | Official Bitcoin Retirement Account Investment.

Source: https://bitcoinira.com/articles/what-is-the-halvening-hint-its-a-big-deal

Blockchain

BitcoinOrg Hacked: Giveaway Scam Promising Users to Double Their BTC

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Fake cryptocurrency giveaway scams continue to pop up frequently, and the latest victim is the oldest bitcoin educational resource – BitcoinOrg. As of now, though, the website has been taken down, and the pseudonymous developer operating it has blamed it on Cloudflare.

  • Earlier on September 23rd, users on Twitter outlined that the BitcoinOrg website has an untypical and concerning message on its homepage. It urged visitors to send a certain amount of the primary cryptocurrency and to double their investment.
  • Needless to say, this was most surely another scam, which the community has already grown accustomed to. History shows countless such fraudulent activities that involved some of the most well-known names in and outside the space.
  • Perhaps the most blatant recent one was against Twitter, where the accounts of names like Joe Biden, Barack Obama, Jeff Bezos, and more were hacked to promote similar scams that promised people to double their bitcoins.
  • Despite sounding too good to be true, such frauds still manage to dupe funds from victims, which makes them especially dangerous.
  • As of now, BitcoinOrg has been taken down as it shows a 404 Not Found error. The developer behind the website, going by the Twitter handle Cobra, hinted that this security issue might be an issue with the new website security company as BitcoinOrg “hasn’t been hacked, ever” before it moved to Cloudflare.
  • Interestingly, the CEO of Cloudflare, Matthew Prince, told CNBC earlier this month that cryptocurrency-related websites have become a popular target for cybercriminals.
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Source: https://cryptopotato.com/bitcoinorg-hacked-giveaway-scam-promising-users-to-double-their-btc/

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Blockchain

United States Infrastructure Bill Brings Cardano Billionaire to Washington

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Cardano Founder, Charles Hoskinson to Speak at GBA Blockchain & Infrastructure.

Charles Hoskinson, Founder of Cardano and Co-Founder of Ethereum, 

Educates Government Legislators, Regulators, & Administrators

 

The recent debate over the Infrastructure Bill has made two things clear: 

The government will be regulating blockchain activities, but they don’t understand it well enough to do an effective job. For that reason, the Government Blockchain Association (GBA) and our partners are organizing Blockchain & Infrastructure, a two-day educational seminar for government leaders and their staff. The educational content will be delivered to public sector organizations exploring blockchain and cryptocurrency.

 

Mr. Charles Hoskinson of Cardano will be speaking live from Washington, DC, and will also be broadcast to virtual attendees in the Americas, Europe, Asia, Africa, and Australia. This 2-day hybrid experience will be a crash course in blockchain and cryptocurrency training, followed by an evening reception for networking and meeting the speakers, including Charles Hoskinson, Scott Stornetta, and other blockchain pioneers. Live and virtual attendees will also be able to engage with Mr. Hoskinson and other participants through a conference app provided by Qbix.

 

In 2013, Mr. Hoskinson was one of the original founders of Ethereum. A few years later, he spearheaded IOHK (Input Output Hong Kong), whose key project is Cardano. Cardano’s market cap is currently over $69 Billion. IOHK sponsors blockchain technology research labs at the University of Edinburgh and the Tokyo Institute of Technology and is collaborating on a blockchain research project with the University of Wyoming. Mr. Hoskinson will be speaking at Blockchain & Infrastructure and will be networking with conference attendees during the evening reception on September 28 in Washington DC.

 

Source: PlatoData Intelligence

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Blockchain

Bhutan joins hands with Ripple for CBDC pilot

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Ripple is in the news today after it announced a partnership with Bhutan’s central bank – the Royal Monetary Authority (RMA) – for a central bank digital currency (CBDC) pilot.

This development was welcomed by the likes of Yangchen Tshogyel, Deputy Governor of the RMA, who said,

“Our collaboration with Ripple is testament to the potential of CBDCs to provide an alternative and sustainable digital payment instrument in Bhutan.”

According to the San Francisco-based blockchain firm, this will be a natural fit for Bhutan to enhance cross-border digital payments and expand its financial inclusion efforts.

The trial is set to use Ripple’s CBDC Private Ledger. Ripple further explained,

“Ripple’s CBDC solution leverages a private version of the public, open-source XRP Ledger, ensuring greater control over issuance, management, privacy, and validation – more-so than a public blockchain.”

Currently, Bhutan is targeting a sustainable payment solution and is working towards becoming the only carbon-negative country in the world.

Ripple has often claimed that its CBDC solution is carbon-neutral and its consensus protocol is 120,000x more energy-efficient than proof-of-work blockchains. This might be what caught Bhutan’s eye.

The initiative is also part of the Himalayan nation’s goal to increase financial inclusion by 85% by 2023. In fact, data suggests that of the 5.15 lakh adult Bhutanese above the age of 18, around 67% own a bank account in a formal financial institution.

Hence, the collaboration is under the country’s larger initiative of Financial Inclusion National Action Plan (FINAP) 2019-2023

According to reports, the pilot will run under the tentative name of “Digital Nürburgring.” Additionally, the distributed ledger technology will be in addition to Bhutan’s existing payment infrastructure and will improve the country’s retail and cross-border wholesale remittances.

This will reportedly be in alignment with the government’s Electronic Public Expenditure Management System (e-PEMS) to regulate transactions between the government and banking systems. As an extension, the country is looking to harness advantages of tremendous speed, cost efficiency, and innovation in the CBDC pilot.

Ripple CBDC Private Ledger

The US-based company had announced a private XRP ledger as an improved version of its public blockchain in March this year. It claimed to have added interoperability to the existing payments framework in accordance with the Bank of International Settlement’s CBDC requirement.

The solution is expected to facilitate full settlement interoperability for the RMA while maintaining monetary and technological independence.

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Source: https://ambcrypto.com/bhutan-joins-hands-with-ripple-for-cbdc-pilot

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