Bitcoin will be halved sometime this month. What is Bitcoin halving, how will it affect the market, and what does this mean for the long-term prospects of miners and cryptocurrencies? Here’s everything you need to know about this key event.
Bitcoin Halving – A Brief Overview
The word “halving” might resemble a horror flick – something about a serial killer. But it’s actually a nickname for one of the most anticipated events in the history of Bitcoin.
An encouraging trend has attracted much less attention amidst the COVID-19 crisis. Having banned crypto in the past, or refused to acknowledge them as money, various countries have suddenly started recognizing them in their financial laws and courts. This could well mark an important shift for them towards the mainstream.
The below presentation throws more light on the matter.
With the outbreak of the coronavirus, its impact on the global economy is becoming more and more apparent. Below, we list three possible positive effects of COVID-19 on the world of bitcoin.
Bitcoin continues its breakout
Against the global uncertainty, Bitcoin is still proving its worth as a macro hedge. BTC has achieved almost 35% improvement and was able to hit $10,000 in 2020.
To many, this is clear evidence that Bitcoin’s status as a risk-free asset is solid. The idea is that as a result of the Coronavirus novel, as China’s economy weakens, Chinese investors have entered bitcoin to use its safe haven story.
You can obtain bitcoins in several ways, each one being completely different from each other. It’s also very important for you to know that bitcoins can be sent very easily from one individual to another. As a result, they take the form of a highly transferable product.
Now let’s take a look at some easy ways to get bitcoins.
The incredibly inexpensive days of bitcoin mining, which only lasted a few years, were days when bitcoin was so cheap that it made financial sense to mine it at a very low cost instead of buying it.
Today, bitcoin mining is still a viable option, but different steps need to be taken in order to properly exploit the current difficulty level.
BTC mining requires specialized equipment that performs the extremely fast calculations necessary for bitcoin mining. The total power of all miners, or the hashrate is so important that the material found in average computers (or any computer, for that matter) cannot perform the data mining calculations quickly enough to produce significant results. A specialized hardware is required which is known as ASIC or Application Specific Integrated Circuit.
Exchanges are by far the most common way to get bitcoins. Exchanges are platforms that allow users to buy cryptocurrencies for another means of exchange, usually a fiat currency.
Exchanges do this via an order book or a general ledger which corresponds to the buying or selling instructions. These instructions are called “auctions” and “requests”, respectively.
Note: After purchase, make sure you don’t keep your bitcoins on the exchange. Make sure to transfer them to a safe and secure encrypted wallet like AiBB.
Earning bitcoins in exchange for goods and services
It is an option which is just as feasible as mining or investing in digital currency. There are certain businesses allowing people to earn BTCs in exchange for their services.
These businesses typically including some freelancing job sites where BTCs are paid to people, as well as companies that collect BTC by accepting it as a means of payment.
Earning bitcoin, in some cases, can be the most convenient option for someone with a running business. No real transition is necessary for companies to undergo to earn bitcoin. You can even just add your bitcoin wallet address to an invoice to accept payments in BTCs.
Bitcoin ATMs (BATM) are kiosks that look like traditional ATMs, but instead of connecting to a bank account, they connect to the Internet and allow cash and credit card transactions for bitcoin. Some BATMs offer two-way functionality, which allows users to buy and sell bitcoins through the kiosk.
BATMs now require some sort of an identity verification like KYC / AML information before finalizing a transaction, so users must be ready to scan their credentials into the machine. Common BATM locations include retail stores, stores, bars, restaurants, malls, and airports.
To know more about bitcoins and other cryptocurrencies, download the AiBB app and go to the “learn” section to access everything on a single page.
Bitcoin, the mysterious money of the internet, has grown in popularity over the last few years and is still rightfully considered the undisputed king of cryptocurrency.
Here is a collection of information about Bitcoin that you may not have heard yet.
The first Bitcoin transaction was for pizza
Do you know the reason behind the celebration of May 22 as Bitcoin Pizza Day?
Initially, when bitcoins were mined, they became virtually useless as BTCs were as cheap as chips.
However, it was until May 22, 2010, when someone bought something with Bitcoin.
Seven years ago, on this day, someone bought Piazzas with Bitcoin, and the purchase was a big deal because no retailer was accepting Bitcoin for goods and services at that time.
On May 22nd, 10,000 BTCs were spent on two Papa John’s pizza. This was the first official documented purchase of a consume good using Bitcoin.
10,000 BTCs were worth around $41 during that time.
Honey Badger is Bitcoin’s private animal mascot
Honey Badgersare tough cookies. They can withstand severe wounds, bee attacks and poisonous snake bites. This resilient creature seemed an excellent fit for the mascot of Bitcoin, which has survived all kinds of attacks over the years.
Over 184 billion BTCs were accidentally created in 2010 by a bug
This is also known as the value overflow event. The bug resulted in the creation of over 184 billion
Known as the standard overflow event, this bug resulted in the creation of over 184 billion BTCs. Satoshi or a different developer released a patched Bitcoin client that fixed the error within 5 hours of occurrence by ignoring all the excess coins. Most of the miners willfully accepted this new client and the error was forked out of the blockchain.
There will only be 21 million bitcoins
The supply of bitcoins is limited.
Currently, 16.3 million bitcoins have already been mined and are in transactions. The last Bitcoin to be mined is going to happen in 2140. After that, no new Bitcoin is supposed to come into existence.
Bitcoins cannot be banned
Due to the nature of Bitcoin, there is a regular fear on bitcoins getting banned. This animosity towards Bitcoin because of its operation outside the jurisdiction of a traditional banking system.
However, the basic design of it is such that it can never be banned, it can only be controlled. As long as you have an internet connection and a Bitcoin wallet, you can get yourself involved with Bitcoins.
Only 10% of Bitcoins is used for crime
Although there is still a long-held misconception that Bitcoin is primarily used for illegal transactions in the darknet, this myth was recently removed by a special agent of the US Drug Enforcement Agency (DEA).
According to the Cyber Investigative Task Force, an inter-agency collaboration involving DEA, the FBI and ATF, 90% or more of Bitcoin volumes are not fully related to drug purchases. Bitcoin used for illegal activities on the darknet rose between 2011 to 2012 but then, it became very negligible.
Bitcoin, the mysterious “money of the internet” has steadily risen in popularity over the last 8 years and is still rightfully considered the undisputed king of cryptocurrencies. AiBB has come up with an infographic highlighting a few basic bitcoin facts that you may not even know.