BTC – (Bitcoin) A Cyberspace Savior or a Digital Demon?
Delve into the intriguing world of Bitcoin and discover whether this cryptocurrency is a boon or a bane to the digital realm.
We will explore, its revolutionary impact on finance and its potential pitfalls in the hands of cybercriminals.
In this post, I have tried a different approach to understanding the importance of it. Additionally we will try to unravel the truth behind it’s enigmatic presence and determine if its a virus in cyberspace.
Are You ready? Let’s dive in.
Table of contents
- What is a BTC(Bitcoin)?
- How does BTC Work?
- BTC’s Average Transfer Fees experience a sharp increase: a 122% rise in 10 Days.
- What is BTC(Bitcoin) Mining?
- How much BTC has been Mined?
- There are 2 main types of wallets: Hardware wallets and Software wallets.
- Latest Update on Bitcoin
- Is Bitcoin Useless?
- Bitcoin – Takeaways
- BTC- Use Cases and Affordability
- The Case Against Bitcoin
- Is Bitcoin a Waste of Resources?
- Is All Bitcoin Worthless Now?
What is a BTC(Bitcoin)?
As defined in a white paper released by the hidden inventor of Bitcoin, Santoshi Nakamoto,
It 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 BTC Work?
It is a form of digital currency. That aims to eliminate the need for central authorities such as banks or governments. Instead,
It uses blockchain technology to support peer-to-peer transactions between users on a decentralized network.
BTC’s Average Transfer Fees experience a sharp increase: a 122% rise in 10 Days.
Statistics show transfer fees on the Bitcoin network have increased by 122% since the end of last month. Eventually, the average transaction fee climbed from $0.767 to $1.704 per transaction.
The rise in on-chain fees coincides with the new Ordinals digital collectible trend on the network. Besides, the 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 macro micro .me.charts, is around $24,260 while BTC’s spot value on Wednesday is just under $23,000.
What is BTC(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.
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How much BTC 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.
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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.
essentially, Software wallets exist on computing devices, like desktop computers, a smartphone, or 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.
What is Money?
a. Money is actually 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 the 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 that but Companies under a fiduciary obligation can also issue more stock if they want
Other problems like tariffs, competitors & CEO behavior can also affect stocks.
So Stocks are an imperfect approach.
So, what can be the other approach?
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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
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. It’s a property in cyberspace, capped at 21 million only, and can hold it for max a year.
d. This cyberspace property is also better than buying $18000 worth of Gold.
Why, let us 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.
It is Engineered Gold
a. So Bitcoin is crypto gold with no gold problems
b. You can mine more. Only 21 million will exist.
c. It is weightless & never decomposes
d. Can break it into pieces, send it 1000 places, and recompose it again
For the first time in history, people can take their money to the grave. It’s a big idea.
But how? Let us 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
A virus in Cyberspace
a. Its a lifeform in Cyberspace
b. It’s 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.
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.
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Is Bitcoin Useless?
Ordinarily, a 10th anniversary is a cause for celebration and reflection. But there were few accolades for Bitcoin in 2018 to put it simply.
To explain, that year, Bitcoin celebrated 10 years since Satoshi Nakamoto introduced the digital currency in response to the global financial crisis.
By decentralizing the financial ecosystem, Nakamototo attempted to shift the balance of power from a select group of financial institutions to the wider public.
But as Bitcoin proven to be useless, or is it an innovation delivering its promise of changing the world of finance as we know it?
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Bitcoin – Takeaways
Firstly, the year 2020 through 2022 were particularly tumultuous for the entire crypto industry.
Secondly, Bitcoin’s price soared as high as $68,789, then dropped to less than $17,000 one year later.
Thirdly, interest in crypto as a payment system and the technology behind it is steadily growing regardless of Bitcoin’s price.
Additionally, Bitcoin has gained mainstream popularity, with people using it for purchases, trading, and investing (both retail and institutional).
Further, Bitcoin enthusiasts point to developments within its ecosystem as proof that the virtual currency has staying power, while skeptics endorse it as a waste of resources and a scam.
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BTC- Use Cases and Affordability
Essentially, Bitcoin developments in recent years within its ecosystem have boosted thoughts that the blockchain and virtual currency have staying power.
Various technological advancements mean that cryptocurrency could be used in retail transactions in the future.
Additionally, the number of Lightening nodes within Bitcoin’s network has continued to multiply, including cross-chain swaps.
Cross-chain swaps allow you to trade a token from one blockchain without the hassle of selling the first coin, then buying the next.
Further, the Bitcoin ecosystem also continues to grow, including a suite of products that expand its range of use cases.
In addition to trading with Bitcoin, you can use it as collateral for loans or to buy jewelry.
Many small and mid-size businesses have also begun using Bitcoin to make wire transfers because it reduces middleman fees.
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What is a Lightening Network?
Essentially, the Lightening Network is a second-layer blockchain that supports the Bitcoin main blockchain. It is intended to speed up Bitcoin’s network by conducting transactions off-chain.
The Case Against Bitcoin
Firstly, Bitcoin’s identity crisis is largely to blame for its volatility. Additionally, it was originally designed as an international currency.
As well as as a mechanism for daily transactions that could seamlessly cross national borders – except it did not turn out that way.
Over the years, Bitcoin’s use in money laundering and illegal activities has grown. Although it is not as severe as is often advertised.
Basically, in 2022, most of the illicit activities using blockchain were theft, avoiding sanctions (43% of illicit activity), and scams.
Darknet market use, child abuse material, and terrorism financing made up a tiny fraction of the 0.24% of crypto transactions that were illicit.
As low as the crypto crime transaction figure is, it is still too high. Which is a reflection of the anonymity Bitcoin provides to those with nefarious intentions.
Firstly, the challenge relates to the bubbles in Bitcoin’s price. Several Bitcoin bubbles have burst, and it remains to be seen whether the current record-high prices will remain.
Further, Bitcoin bubbles occurred in 2018,2019, and 2021.
Generally, in each of these instances, the price followed a parabolic curve. Additionally, a sharp increase in valuation was immediately followed by an equally precipitous decline.
During each of these bubbles, Bitcoin’s value rose by thousands of dollars and attracted significant retail capital.
Thin liquidity volumes played a major part in boosting Bitcoin’s price in these bubbles.
Essentially, the biggest change in Bitcoin’s future could come from regulation. The Securities and Exchange Commission has repeatedly denied most requests for Bitcoin exchange-traded funds (ETFs).
With only a few instruments making it to exchanges. Bitcoin and other cryptos remain a prominent topic of discussion at Fintech conferences, in legislative meetings, and among regulators worldwide.
The European Union introduced legislation for a legal framework among its member countries to assist in Bitcoin and crypto-tracking transactions to help prevent illicit activity and introduce consumer protection measures.
However, it is likely to be several years before there are any reliable and quantifiable results on the legislation’s effects.
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Is Bitcoin a Waste of Resources?
Whether Bitcoin is a waste or not is a subjective argument. One side says too much energy is being used to create currency; another says the energy footprint is less than the current financial networks.
Some reports discuss Bitcoin as a savior for those without access to traditional financial services ‘while others argue against that.
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Is All Bitcoin Worthless Now?
Chiefly, Bitcoin has not been worthless since it was first introduced. But it is still in its discovery phase. This means that investors, consumers, businesses, scientists, and governments are still exploring its uses and value.
Firstly, the Bitcoin price forecast from Crypto price predictions mentions that according to the current Bitcoin price, Bitcoin 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.
Bitcoin has seen its share of attackers and defenders, all raising excellent points. But determining whether Bitcoin is useless depends on what people at the individual level think about it.
Essentially, 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.
What all of this means is that, in the end, it is up to you to decide whether it is useless or not.
What do you think? Do write your opinions.
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Bitcoin is extremely volatile and high risk. If you are willing to take take the risk, first make sure you understand what you are investing in, have a crypto investment strategy and have considered obtaining appropriate financial advice. You should only invest what you can afford to lose.
The lowest closing price for Bitcoin (BTC) all-time high was $0.05, on July 18,2010. The latest price is $29,000.00 approx.
Satoshi Nakamoto is said to be the inventor of Bitcoin and wrote the token;s original white paper in 2008.
If we take Cathie Wood’s prediction of Bitcoin reaching $1.48 million by 2030, then that 0.00382 Bitcoin would be worth around $5.654.
From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptos, making it overwhelming when you are first getting started in the world of crypto.