Satoshi Nakaboto: ‘Bitcoin ends day above $12K for first time in a year’
Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.
Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Hegel used to say: Yippee!
We closed the day, August 17 2020, at a price of $12,254. That’s a respectable 3.01 percent increase in 24 hours, or $358. It was the highest closing price in four hundred and four days.
We’re still 38 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).
Bitcoin‘s market cap ended the day at $226,261,747,567. It now commands 61 percent of the total crypto market.
Yesterday’s volume of $28,227,687,027 was the highest in nineteen days, 24 percent above last year’s average, and 61 percent below last year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 438 tons of gold.
A total of 292,819 transactions were conducted yesterday, which is 8 percent below last year’s average and 35 percent below last year’s high.
Yesterday’s average transaction fee concerned $2.14. That’s $1.77 below last year’s high of $3.91.
As of now, there are 19,329 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.
Furthermore, the top 10 Bitcoin addresses house 4.9 percent of the total supply, the top 100 14.2 percent, and the top 1000 34.8 percent.
With a market capitalization of $224 billion, Bank of America has a market capitalization most similar to that of Bitcoin at the moment.
On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.
He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 97.7 percent behind being on track. Bitcoin‘s price should have been $518,517 by now, according to dickline.info.
On a yearly basis Bitcoin now uses an estimated 66 terawatt hour of electricity. That’s the equivalent of Czech Republic’s energy consumption.
Yesterday 40,655 fresh tweets about Bitcoin were sent out into the world. That’s 100.1 percent above last year’s average. The maximum amount of tweets per day last year about Bitcoin was 82,838.
This was yesterday’s most engaged tweet about Bitcoin:
Bitcoin broke past $12,000 to its highest level in a more than a year https://t.co/8chSmjCXV7
— Bloomberg Crypto (@crypto) August 17, 2020
This was yesterday’s most upvoted Reddit post about Bitcoin:
Gold: can’t validate scarcity, can’t validate authenticity, can’t transport, can’t divide, can’t hide. Bitcoin shines at everything gold ever wanted to do. from r/Bitcoin
My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.
Author: Satoshi Nakaboto
How to buy Bitcoin
Bitcoin is in the news today more than ever. Thanks to skyrocketing prices and rollercoaster dips, everyone and their dogs are interested in learning how to buy and sell Bitcoin. As the most popular form of cryptocurrency (and the blockchain technology that powers it), Bitcoin is now widely accepted around the world and has a growing number of applications. If you want to take advantage of that though, you first need to know how to buy Bitcoin and what to do with it when you have.
Want to mine Bitcoin instead? It’s not advisable, but it is still possible. Here’s how.
How to buy bitcoin: Mycellium
Digital “wallets” store Bitcoin until you are ready to spend them or exchange them for another currency. Wallets range in terms of features, platforms that accept them, and level of security, so it’s essential to choose one that works for you — though you should probably steer clear of the one evangelized by John McAfee.
For those just getting started, your best bet is to use the wallet that’s automatically provided to you on our recommended exchange, Coinbase. However, it’s also a good idea to set up a wallet that’s not linked to a crypto-exchange to ensure you’ll have ready access to your Bitcoin even in the event of overwhelming traffic or site closure.
Here are our recommended options:
Exodus: An all-in-one offline application with support for several cryptocurrencies, including Bitcoin, Exodus is free to use, has built-in shape-shift trading, and includes some simple graphing tools to help you visualize your cryptocurrency portfolio.
Mycelium: This one is a popular mobile wallet known for being compatible with more advanced tech, like Trezor hardware wallets (for maximum security) and Tor.
Bitcoin Core: A free and open-source choice that serves as a Bitcoin node, Bitcoin Core does an excellent job at verifying payments, only accepting payments from valid blockchains.
For a look at a few other of our favorite wallets, here’s a more in-depth guide to the best Bitcoin wallets.
Note: Although an online wallet is excellent for your first Bitcoin purchase, if you find yourself with a lot of valuable cryptocurrencies because of trading or an upswing in value, make sure to store it in an offline “cold storage” wallet for maximum protection.
The best place to make your first Bitcoin purchase is on an exchange. There are a whole lot of exchanges out there, with varying performance. Some are less trustworthy than others, and some can be quite limited, so it’s crucial to pick the right exchange in the first place. We recommend using Coinbase, though there’s no harm in checking out the competition by using a Bitcoin exchange comparison site.
Signing up for a Coinbase account is easy, though you will need to provide some form of identification. That may involve sending a copy of your photo ID and potentially also sending a live image of your face via webcam. These rules are essential to follow as they allow the site(s) to comply with know-your-customer regulations.
Although Coinbase alone will allow you to buy and sell Bitcoin, it’s also worth signing up to its linked exchange platform, Coinbase Pro, which will give you greater control over your purchases.
If you would prefer a more direct route in buying Bitcoin, you can opt to use a peer-to-peer service such as LocalBitcoin or BitQuick. They offer a more extensive array of payment options and let you purchase Bitcoin directly from a seller without the exchange middleman. If you do opt to use these and plan to trade in person, make sure to meet in a safe place.
How to buy bitcoin: Buying on Coinbase
Exchanges accept a variety of payment options, though one should be wary of scam sites. Coinbase allows both bank account and credit or debit card transfers for payments, though one payment solution must be linked to your account before you can make a trade. Coinbase recently added PayPal as an option for transferring Bitcoin, though there are certain caveats.
Note: Bitcoin ATMs allow you to exchange Bitcoin in compatible wallets for cash. These ATMs are available in a limited number of cities and provide an alternative to withdrawing money using an exchange. Again, most exchanges and online wallets will not deal directly with cash.
How to buy bitcoin
Exchanges provide you with information on how many (or how much of a) Bitcoin you can buy for specific sums of money. However, due to its volatile nature, Bitcoin prices can vary dramatically by exchange and from moment to moment. That means that even if you have a lot of money to burn, you’ll probably be buying a fraction of a Bitcoin. There’s nothing wrong with that, and for most people, this is the route they’ll go down, as few but the wealthy can afford to purchase several Bitcoins in one go.
To make your first trade, input the amount of Bitcoin you want to buy in the provided field and click the buy button. On Coinbase or Coinbase Pro, this will be a standard market buy order, which will purchase Bitcoin at the best market rate. Alternatively, you can place a limit order, which lets you set a price you’re willing to pay for a certain amount, and a trade will only happen if that amount shows up at that price.
Once you’ve made your purchase, your new Bitcoin will transfer into your Coinbase wallet for storage. You should then seek out the option to transfer these funds to the address of the Bitcoin wallet you have created that’s off the exchange. You will have to pay a small fee to do so, but that is part and parcel of Bitcoin transfers. Fortunately, the cost of such trades is far from their peak.
Important note: Bitcoin transfers can be a bit sporadic. Unlike other currency trades, when you buy Bitcoin funds, the transaction needs to be recorded in the blockchain and affirmed. Said transfer process can take time, especially during busy trading hours. It’s not uncommon for a trade to take an hour or two to complete, so you may not want to immediately leap over to your account and start moving funds around.
Whether you plan to ultimately sell your Bitcoin (hopefully at a profit) or use it to purchase something, be ready to do so at a moment’s notice. The value of Bitcoin fluctuates rather wildly, so it is crucial to have your end game planned out early on. Be prepared by setting up a seller account now, or figure out how to buy what you want with it before you set out to make a purchase. That way, when the time comes, you’ll not be in a panicked rush to complete your transactions.
For a look at where you can spend your Bitcoin, here’s a list of compatible online stores. Always read reviews and fine print before making any purchase or exchange with your Bitcoin.
Digihost Provides Corporate Update on Bitcoin Mining Capacity
VANCOUVER, British Columbia, Aug. 19, 2020 (GLOBE NEWSWIRE) — Digihost Technology Inc. (“Digihost” or the “Company”) (TSXV: DGHI; OTCPK: HSSHF) is pleased to report that it is prepared to expand its total Bitcoin mining capacity to 164.44 Petahash per second (“P/H’s”), making it one of the largest publicly listed Bitcoin miners in North America. The Company currently has installed miners mining at 141 P/H’s, and expects to bring on-line its other uninstalled mining equipment, representing an additional 23.44 P/H’s in the coming months for a total mining capacity of 164.44 P/H’s. NASDAQ listed Bitcoin miner, Marathon Patent Group, Inc., reported on July 29, 2020 a total mining capacity of 294 P/H’s with a market capitalization of approximately US$110 million at the close of market on August 14, 2020 representing a market capitalization per P/H’s of approximately US$374,150. In comparison, Digihost had a market capitalization of approximately US$5.5 million at the close of market on August 14, 2020 representing a market capitalization per P/H’s of approximately US$33,450.
Currently Digihost holds 80 Bitcoin in its inventory from mining, which at the current approximate Bitcoin price of C$15,851 per Bitcoin values the Bitcoin at approximately C$1,268,080. The strategy has been to hold Bitcoin in order to gain any potential appreciation in value of the Bitcoin held.
Bitcoin has experienced a recent increase in price which may be representative of the increased volatility of the global financial markets, as well as the recent Bitcoin halving event on May 11, 2020. A Bitcoin halving event is when the Bitcoin rewards for each block in the chain mined is cut in half, which also cuts in half the rate at which new Bitcoins enter circulation making Bitcoin scarcer. This event occurs every 4 years. After the first halving event, the Bitcoin block reward was 25, then 12.5, and on May 11th, 2020 was halved again to 6.25 Bitcoins per block.
In the past, Bitcoin halvings have correlated with massive surges in Bitcoin’s price. The first halving in November of 2012 saw an increase in Bitcoin prices from approximately US$12 per Bitcoin to nearly US$1,150 per Bitcoin within a year of the halving.
About Digihost Technology Inc.
Digihost Technology Inc. is a growth-oriented blockchain company primarily focused on bitcoin mining. The Company’s mining facility is located in Buffalo, N.Y., with a 18.7MVA 115,000-kilovolt-ampere outdoor substation with an option to increase the power output to 42MVA. Currently the Company has mining capacity of 164.44 P/H’s.
For further information, please contact:
Digihost Technology Inc.
Michel Amar, Chief Executive Officer
Email: [email protected]
Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of Digihost and its investee companies to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. The information in this release about future plans and objectives of the Company, are forward-looking information. Other forward-looking information includes but is not limited to information concerning: the intentions, plans and future actions of the Company, as well as the Company’ ability to successfully mine digital currency, revenue increasing as currently anticipated, the ability to profitably liquidate current and future digital currency inventory, volatility of network difficulty and digital currency prices and the resulting significant negative impact on the Company’s operations, and the regulatory environment of cryptocurrency in the applicable jurisdictions..
Although Digihost believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Such factors include, among others, risks relating to future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the need for continued technology change; protection of proprietary rights; network security risks; the ability of the Company to maintain properly working systems; reliance on key personnel; global economic and financial market deterioration; and volatile securities markets impacting security pricing unrelated to operating performance. In addition, particular factors which could impact future results of the business of the Company include but are not limited to: the effects on the Company of the Covid-19 crisis; ability to successfully mine digital currency; revenue may not increase as currently anticipated, or at all; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices; an increase in network difficulty; the Company may not achieve operating hash rate, power utilization, efficiencies or profitability as currently anticipated, or at all; the volatility of digital currency prices; the anticipated growth and sustainability of electricity for the purposes of cryptocurrency mining in the State of New York, the ability to complete current and future financings, any regulations or laws that will prevent the Company from operating its business; historical prices of digital currencies; and the ability to mine digital currencies that will be consistent with historical prices. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Digihost does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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