Understanding Bitcoin from a different perspective #3
What is the value of bitcoin? Is it an asset or currency?
In my opinion it is neither just yet. In article #1 We discovered that the first time bitcoin was priced by an exchange. They did so by calculating the electricity it took a single computer to mine a bitcoin. So if the last bitcoin will be mined in 2040,What then will bitcoin be priced by?
January 31/2014
Despite the People's Bank of China clamping restrictions on the currency just a month ago, BTC China has resumed trading. Prices have remained stable. BTC China, one of the most well-known exchanges in the world, said that it would resume allowing yuan trades. "Everything is fine. It was never explicitly banned by the government." BTC China CEO Bobby Lee told CNBC. It appears like there has been a lot of fuss for nothing. That was after a 70% drop in the price of bitcoin a month before😡😡.
February 24/2014
Mt. Gox, the world's largest bitcoin exchange, has declared bankruptcy.The exchange was broke; nearly all of its Bitcoin assets had vanished, including approximately 650,000 coins belonging to customers (worth approximately $40 million) and 100,000 belonging to the exchange itself. Using a weakness in the Bitcoin protocol, hackers siphoned off all of the exchange's assets. "Transaction malleability" was a design flaw that allowed for numerous withdrawals of the same amount, but it wasn't a novel concept. The problem had already been identified and coded around by other exchanges. Surprisingly, Bitcoin withstands the reputational damage, with people blaming the exchange rather than the asset. Bitcoin has fallen from a high of around $1,160 in December 2013 to less than $400 in February 2014.
March 26/2014
Following China's approach, the IRS has determined that Bitcoin is property rather than cash, making it subject to capital gains tax. The move shattered the cryptocurrency's founding values of freedom and decentralization. The lack of faith resulted in a 33% drop in value over the next month, from over $600 on March 10 to just over $400 in mid-April.
June 13/2014
Mining pool GHash now controls 51% of all hashing output, allowing it to circumvent Bitcoin's blockchain's decentralization and exert control over many of its functionalities. What exactly does this imply? Hashing is the computation process that makes a Bitcoin .it's what miners execute to build individual blocks, which are subsequently added to the chain. If someone holds more than 51% of the hashrate, they can reject or even reverse transactions, spend the same coins twice, demand higher fees, and even deny the Bitcoin network service. Later that year, the mining pool convened a round table of miners and developers to try to come up with a long-term solution to the 51 percent problem. This resulted in support for the Segregated Witness feature (more on that later).
July 30/2014
Over the summer, a slew of eager businesses joined the Bitcoin bandwagon, including Microsoft (MSFT), Dell (DELL), Braintree (a Paypal (PYPL) subsidiary), and online shopping behemoth Overstock (OSTK). However, the long-term price decline continues, and by the end of the year, Bitcoin will be back below $300. In fact, it's possible that the major corporations were the ones that pushed the price down. Accepting Bitcoin as payment, they'd instantly sell their holdings on the market in order to convert them back into regular cash, increasing supply and depreciating Bitcoin. Wait i thought institutions investing in bitcoin will take us to the moon. That's what crypto twitter tells us.
Unexpectedly, a trader sells the largest Bitcoin transaction ever. He attempts to sell 30,000 coins on the Bitstamp platform for $300, significantly below the current selling price in the mid-300s. the market is so perplexed by the 'Bearwhale'? Why sell it so cheap? - the price sways a little. But just for a brief moment.Some believe the $9 million cut-price deal's magnitude was an intentional move to increase the market's prominence and attract new buyers, which would have helped absorb the volume.In the Bitcoin realm, the "slaying of the Bearwhale" has become legendary, generating a plethora of mythology, poetry, and art to commemorate his antics.
January 04/2015:
Hackers use a targeted phishing assault on Bitstamp employee Luka Kodric to obtain access to the exchange's systems and steal nearly 20,000 Bitcoins worth over $5 million. The price dips from $264 on January 4 to $171 the following week. It wasn't the end of the world, and it certainly wasn't another Mt. Gox. The thieves only took a small part of Bitstamp's total coins, and the theft had no impact on client accounts or the "cold storage" section where the majority of the company's assets were housed.
February 04/2015
Over 100,000 merchants now accept Bitcoin, including Microsoft (MSFT), Dell (DELL), Wikipedia, Twitch, Greenpeace, Expedia (EXPE), and PayPal (PYPL). People may feel confident that Bitcoin has genuine value as money, not only as a digital investment, thanks to widespread merchant adoption.Bitcoin venture capital activity increased by 342 percent last year, from $96 million in 2013 to $335 million in 2014, according to data from Bitcoin payment processor BitPay. Xapo received $40 million, Blockchain received $30 million, and BitPay received $30.5 million.
A few things worth noting:
China and bitcoin have a toxic relationship
Bitcoin dipped from above $1000 to $171👀.
The legend of bearwhale.
Ghash has ever had 51% control over the entire bitcoin network
Written by neotrader
In my opinion it is neither just yet. In article #1 We discovered that the first time bitcoin was priced by an exchange. They did so by calculating the electricity it took a single computer to mine a bitcoin. So if the last bitcoin will be mined in 2040,What then will bitcoin be priced by?
January 31/2014
Despite the People's Bank of China clamping restrictions on the currency just a month ago, BTC China has resumed trading. Prices have remained stable. BTC China, one of the most well-known exchanges in the world, said that it would resume allowing yuan trades. "Everything is fine. It was never explicitly banned by the government." BTC China CEO Bobby Lee told CNBC. It appears like there has been a lot of fuss for nothing. That was after a 70% drop in the price of bitcoin a month before😡😡.
February 24/2014
Mt. Gox, the world's largest bitcoin exchange, has declared bankruptcy.The exchange was broke; nearly all of its Bitcoin assets had vanished, including approximately 650,000 coins belonging to customers (worth approximately $40 million) and 100,000 belonging to the exchange itself. Using a weakness in the Bitcoin protocol, hackers siphoned off all of the exchange's assets. "Transaction malleability" was a design flaw that allowed for numerous withdrawals of the same amount, but it wasn't a novel concept. The problem had already been identified and coded around by other exchanges. Surprisingly, Bitcoin withstands the reputational damage, with people blaming the exchange rather than the asset. Bitcoin has fallen from a high of around $1,160 in December 2013 to less than $400 in February 2014.
March 26/2014
Following China's approach, the IRS has determined that Bitcoin is property rather than cash, making it subject to capital gains tax. The move shattered the cryptocurrency's founding values of freedom and decentralization. The lack of faith resulted in a 33% drop in value over the next month, from over $600 on March 10 to just over $400 in mid-April.
June 13/2014
Mining pool GHash now controls 51% of all hashing output, allowing it to circumvent Bitcoin's blockchain's decentralization and exert control over many of its functionalities. What exactly does this imply? Hashing is the computation process that makes a Bitcoin .it's what miners execute to build individual blocks, which are subsequently added to the chain. If someone holds more than 51% of the hashrate, they can reject or even reverse transactions, spend the same coins twice, demand higher fees, and even deny the Bitcoin network service. Later that year, the mining pool convened a round table of miners and developers to try to come up with a long-term solution to the 51 percent problem. This resulted in support for the Segregated Witness feature (more on that later).
July 30/2014
Over the summer, a slew of eager businesses joined the Bitcoin bandwagon, including Microsoft (MSFT), Dell (DELL), Braintree (a Paypal (PYPL) subsidiary), and online shopping behemoth Overstock (OSTK). However, the long-term price decline continues, and by the end of the year, Bitcoin will be back below $300. In fact, it's possible that the major corporations were the ones that pushed the price down. Accepting Bitcoin as payment, they'd instantly sell their holdings on the market in order to convert them back into regular cash, increasing supply and depreciating Bitcoin. Wait i thought institutions investing in bitcoin will take us to the moon. That's what crypto twitter tells us.
Unexpectedly, a trader sells the largest Bitcoin transaction ever. He attempts to sell 30,000 coins on the Bitstamp platform for $300, significantly below the current selling price in the mid-300s. the market is so perplexed by the 'Bearwhale'? Why sell it so cheap? - the price sways a little. But just for a brief moment.Some believe the $9 million cut-price deal's magnitude was an intentional move to increase the market's prominence and attract new buyers, which would have helped absorb the volume.In the Bitcoin realm, the "slaying of the Bearwhale" has become legendary, generating a plethora of mythology, poetry, and art to commemorate his antics.
January 04/2015:
Hackers use a targeted phishing assault on Bitstamp employee Luka Kodric to obtain access to the exchange's systems and steal nearly 20,000 Bitcoins worth over $5 million. The price dips from $264 on January 4 to $171 the following week. It wasn't the end of the world, and it certainly wasn't another Mt. Gox. The thieves only took a small part of Bitstamp's total coins, and the theft had no impact on client accounts or the "cold storage" section where the majority of the company's assets were housed.
February 04/2015
Over 100,000 merchants now accept Bitcoin, including Microsoft (MSFT), Dell (DELL), Wikipedia, Twitch, Greenpeace, Expedia (EXPE), and PayPal (PYPL). People may feel confident that Bitcoin has genuine value as money, not only as a digital investment, thanks to widespread merchant adoption.Bitcoin venture capital activity increased by 342 percent last year, from $96 million in 2013 to $335 million in 2014, according to data from Bitcoin payment processor BitPay. Xapo received $40 million, Blockchain received $30 million, and BitPay received $30.5 million.
A few things worth noting:
China and bitcoin have a toxic relationship
Bitcoin dipped from above $1000 to $171👀.
The legend of bearwhale.
Ghash has ever had 51% control over the entire bitcoin network
Written by neotrader
