In this Post, I have tried a different approach to understanding the importance of Bitcoin. Are You ready? Let’s dive in.
- What is a Bitcoin?
- How does Bitcoin Work?
- Bitcoin’s Average Transfer Fees experience sharp increase : 122% rise in 10 Days.
- What is Bitcoin Mining?
- How much Bitcoin has been Mined ?
- There are 2 main types of wallets: hardware wallets and software wallets.
- Latest Update on Bitcoin
What is a Bitcoin?
As defined in a white paper released by the hidden inventor of Bitcoin , Santoshi Nakamoto ,
Bitcoin is a “purely peer-to-peer version of electronic cash that would allow online payments .
To be sent directly from one party to another without going through a financial institution.
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How does Bitcoin Work?
Bitcoin is a form of digital currency. That aims to eliminate the need for central authorities such ad banks or governments. Instead,
Bitcoin uses blockchain technology to support peer-to-peer transactions between users on a decentralized network.
Bitcoin’s Average Transfer Fees experience sharp increase : 122% rise in 10 Days.
Statistics show transfer fees on the Bitcoin network have increased 122% since the end of last month. Eventually, as the average transaction fee has climbed from $0.767 to $1.704 per transaction.
The rise in onchain fees coincides with the new Ordinals digital collectible trend on the network. Besides, number of inscriptions nearing 20,000.
Rising Transaction fees help Bitcoin miners reap increased revenue despite falling spot prices.
Bitcoin network fees, or the average cost to transfer BTC rose 122% during the first week of Feb. 2023.
Statistics from bitinfocharts.com and ycharts.com show the average transaction on Feb.7 , 2023 was around 0.000075 BTC or $1.70 per transfer .
Onchain fees on Jan. 29, ten days prior, were roughly $0.767 . According to statistics, users generally pay lower fees than the average.
And then, the median-sized on chain transfer using the Bitcoin network at that time was around $0.167 per transfer.
As of Feb.7th , median -sized fees have increased 316% to $0.696 per transfer.
Statistics for Feb.7 indicate the cost of producing BTC , according to macomicro .me.charts , is around $24,260 while BTC’s spot value on Wednesday is just under $23,000.
What is Bitcoin Mining?
Mining is the process that maintains the bitcoin network and also how new coins are brought into existence.
All transactions are publicly broadcast on the network and miners bundle large collections of transactions together into blocks.
By completing a cryptographic calculation that’s extremely hard to generate. But very easy to verify. Roughly every 4 years the software makes it twice as hard to mine bitcoin.
By reducing the size of the rewards.
How much Bitcoin has been Mined ?
Bitcoin block #714, 032 , which was mined at 23. 26 UTC , rewarded its miner with 6.25 BTC as per the current issuance schedule. 90% of all Bitcoin has now been mined.
ARK Founder Cathie Wood has doubled down on the $1 million by 2030 bitcoin price prediction.
As well as , declaring her innovation and disruption fund “the new Nasdaq” in a Bloomberg interview.
There are 2 main types of wallets: hardware wallets and software wallets.
Firstly, Hardware wallets are the most secure type of Bitcoin wallet because their private keys are stored on a physical device .
And theoretically cannot be accessed by a computer or from the internet.
When a person wishes to make a transaction, they plug in the hardware wallet (usually via USB).
The hardware wallet will sign transactions without compromising the private key.
The downside to hardware wallets is the cost and availability of the devices. Ledger and Trezor are well-known hardware wallets.
essentially, Software wallets exist on computing devices, like desktop computers, a smartphone, or in web browsers.
Secondly, since computing devices run many programs or applications, they are susceptible to viruses, malware, and phishing schemes.
Making all software wallets vulnerable to some degree.
That being said, hacking incidents are extremely rare and software wallets are generally considered safe for everyday use.
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What is Money?
a. Money is actually an economic energy.
b. Currency is the medium through which this energy moves.
c. But gold is expensive & fiat currencies are collapsing.
d. Dollar drops 15% per year in value.
e. Argentine Peso loses 40% & Venezuelan loses almost 90%
So what has money become?
Is Money =S & P Index?
In last 30 years, money has become S & P index.
But Stocks are also not a good store of value because they are not scarce.
Not only but , Companies under a fiduciary obligation can also issue more stock if they want
Other problems like tariffs, competitors & CEO behaviour can also affect stocks.
So Stocks are an imperfect approach.
So, what can be the other approach?
a. ‘Let’s say a building in Argentina has a rental/lease
b. The rental is capped at the CPI or labeled in local currency (Pesos)
c. So if the local currency (Pesos) collapses,the value of rental income will also collapse
d. So wouldn’t it be great if I could buy a virtual building ,move it out of the country,rent it to people in New York and protect my money.
Well that’s what Bitcoin is
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a. A digital property that can be teleported anywhere instantly
b. No property tax, no repainting , no leaks in the roof & no government involvement.
c. Its a property in cyberspace, capped to 21 million only and can hold it for max years.
d. This cyberspace property is also better than buying $18000 worth of Gold.
Why, lets understand
Cyberspace is protected.
a.Real estate guys can build more buildings.
b. Gold miners going to discover more gold
c. Governments can impose a harsh property tax
d. Restrictions on tax,building /more control
But none of this stuff is happening in cyberspace.
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It is Engineered Gold
a. So bitcoin is crypto gold with no gold problems
b. You can mine nore. Only 21 million will exist.
c. It is weightless & never decomposes
d. Can break it into pieces , send it 1000 places and recompose again
For first time in history ,people can take their money to grave. Its a big idea.
But how ? Lets understand
Gun to Your head
a. If put a gun to your head,I can steal your assets, gold, documents ,paper currency etc.
b. Every other form of property in the history of the human race,I pulled a gun,I get it.
c. My only option is negotiation .I would rather have half than zero. The password is his head.
Like I said a virus . Can’t stop it
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A virus in the Cyberspace
a. Its a lifeform in Cyberspace
b. Its a bank in cyberspace, run by incorruptible software.
c. Its copies are stored on every computer
d. I kill 1 computer / node , the other computers will keep running.
e. It’s a cancer bacteria that keeps spreading. And then, we are in the final stages so can not do anything about it.
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Firstly, Bitcoin price forecast from Crypto price predictions mentions that according to the current Bitcoin price ,Bit coin may reach approx. US337,450 at the beginning of 2023.
Additionally, the site also predicted that the lowest Bitcoin price would stay at $US 65,000 this year.
Essenrially, the global crypto market cap was in the green as Bitcoin maintained its high position above the $23,000 mark .
As well as , trading higher over the last few days.
Lastly, Bitcoin has increased by 42.6% in the first month of 2023.
Latest Update on Bitcoin
Firstly, Goldman Sachs has ranked Bitcoin the best-performing asset so far this year.
Secondly, USA’s first Nuclear -powered Bitcoin Mining Center to open in Pennsylvania.
America’s first nuclear-powered Bitcoin mining center is set to open in Pennsylvania. Essentially, revolutionizing the industry with sustainable and eco friendly methods.
Connected to the Susquehanna nuclear power plant, this center will provide zero carbon, low-cost and reliable electricity.
Additionally, for data center customers while setting a new standard for future mining centers.
How does Bitcoin make money ?
At What Price did Bitcoin Start ?
Is Bitcoin still a Good Investment ?
Do Millionaires invest in Bitcoin ?
Will Bitcoin rise in 2023 ?
How does bitcoin make money ?
The Bitcoin network of miners make money by successfully validating blocks and being rewarded .
Bitcoins are exchangeable for fiat currency via cryptocurrency exchanges. Equally, it can be used to make purchases from merchants and retailers that accept them.
At what price did Bitcoin start ?
One BTC was valued at a fraction of a U.S. penny in early 2010. During the first quarter of 2011, it exceeded a dollar. In late 2017, its value skyrocketed , topping out at close $20,000.
Is Bitcoin a good investment ?
Experts remain conflicted on whether bitcoin has bottomed out yet.
The volatility is a big part of why experts recommend keeping your crypto investments to less than 5% of your portfolio.
Like any other asset ,you can make money by buying BTC low.
Do Millionaires invest in Bitcoin ?
That’s about 4.7 million Americans, each with a net worth of at least $1 million, who have invested in crypto.
will bitcoin rise again in 2023 ?
Bitcoin price predictions range from $$5000.Inflation is a key factor in Bitcoin’s price in 2023.
Some believe that this year could precede a big rise in Bitcoin prices next year with Bitcoin halving.
How to start a Bitcoin ?
How to start a Bitcoin?
a. Join a Bitcoin exchange
b. Get a Bitcoin wallet
c. Connect your wallet to a Bank account
d. Place your Bitcoin Order
e. Manage your Bitcoin investments.
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