Bitcoin rose Wednesday after undergoing an eagerly awaited adjustment that occurs every few years to limit the amount of the virtual currency on the market, building on a recent coronavirus-driven rally.
So-called “halving” takes place every four years and is when the reward received by “miners”, whose computer processors enable the running of the world’s most popular virtual currency, is reduced.
Bitcoin is up about 25 percent this year, with investors viewing it as a hedge against inflation expected to be triggered by central banks easing monetary policy to cushion economies from the virus outbreak.
“The Bitcoin ‘halving’ in effect makes generating new Bitcoins twice as difficult,” Jeffrey Halley, senior market analyst from OANDA, told AFP.
“That will be supportive of prices.”
Wednesday’s rise also tracked a broader shift from stocks into other assets, after a top US scientist warned that ending lockdowns too quickly could trigger uncontrollable new coronavirus outbreak.
“Halving” is also expected to hit the profitability of mining bitcoin as more work will be needed to achieve the same reward — but analysts say this could be offset if the unit’s value rises.
Bitcoin, which is notoriously volatile and reached almost $20,000 in 2017 before slumping heavily, has no legal exchange rate, no central bank backing it and is traded on specialist platforms.
It was created in 2008 by a person or group writing under the pseudonym Satoshi Nakamoto as a peer-to-peer decentralised electronic cash system.
It started as the preserve of computer nerds and financial experts but has gained a following among a broader group seeking alternatives to traditional investments, while it has been used to pay for items from a pint in a London pub to a manicure.
This week’s “halving”, which basically involves the halving of the reward from bitcoin mining, was the third time it had occurred. It took place for the first time in November 2012, and the second in July 2016.
The reward was originally set at 50 bitcoins but it was subsequently reduced to 12.5 and is now thought to have been reduced to around just 6.25. The amount has been trimmed over time in order to implement an overall global limit of 21 million bitcoins.
Given its turbulent history, analysts remain sceptical about Bitcoin’s future prospects.
“I think the gains are limited over the long term — as we’ve seen in the past, this is a quasi-asset that tends to go on a random walk,” said Stephen Innes, chief global market strategist from AxiCorp.
Author: AFP – Agence France Presse
Satoshi Nakaboto: ‘JPMorgan now offers banking services to Bitcoin exchanges’
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 de Beauvoir used to say: The long and winding road awaits!
We closed the day, May 12 2020, at a price of $8,804. That’s a respectable 2.25 percent increase in 24 hours, or $194. It was the highest closing price in two days.
We’re still 56 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).
Bitcoin’s market cap ended the day at $161,791,577,301. It now commands 68 percent of the total crypto market.
Yesterday’s volume of $42,142,717,533 was the lowest in nine days, 88 percent above the year’s average, and 43 percent below the year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 770 tons of gold.
A total of 345,069 transactions were conducted yesterday, which is 7 percent above the year’s average and 23 percent below the year’s high.
Yesterday’s average transaction fee concerned $1.79. That’s $1.92 below the year’s high of $3.71.
As of now, there are 12,690 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.
Furthermore, the top 10 Bitcoin addresses house 5.2 percent of the total supply, the top 100 14.7 percent, and the top 1000 35.0 percent.
With a market capitalization of $161 billion, Comcast 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 97.3 percent behind being on track. Bitcoin‘s price should have been $324,580 by now, according to dickline.info.
Bitcoin used an estimated 158 million kilowatt hour of electricity yesterday. On a yearly basis that would amount to 58 terawatt hour. That’s the equivalent of Bangladesh’s energy consumption or 5.3 million US households. Bitcoin’s energy consumption now represents 0.26% of the whole world’s electricity use.
Yesterday 60,453 fresh tweets about Bitcoin were sent out into the world. That’s 215.8 percent above the year’s average. The maximum amount of tweets per day this year about Bitcoin was 82,838.
This was one of yesterday’s most engaged tweets about Bitcoin:
JPMorgan Chase has taken on two bitcoin exchanges, Coinbase and Gemini Trust, as banking customers, the first time it has accepted cryptocurrency clients https://t.co/NgbDpwAYEH
— The Wall Street Journal (@WSJ) May 12, 2020
This was yesterday’s most upvoted Reddit post about Bitcoin:
J.P. Morgan Opens Accounts For Bitcoin Exchanges— Coinbase And Gemini Up First from r/CryptoMarkets
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
Bitcoin Cash Upgrade 3 Days Away – New Opcode Support, Chain Limit Extension, Sigchecks
On May 15, the Bitcoin Cash (BCH) blockchain will be upgraded and there will be at least three new features added to the longest chain. The upgrade in three days is being discussed fervently by the community, because it follows the recent and controversial Infrastructure Funding Proposal (IFP).
In three days’ time, the Bitcoin Cash (BCH) blockchain will upgrade again, adding a few new features to the network. If things go smoothly, as they have in the past, the protocol will have an increased transaction chain limit from 25 to 50. The chain limit extension was requested by various members of the industry for quite some time now. The opcode ‘OP_Reversebytes’ will also be supported in script after the upgrade as well. BCH developers have also improved the counting of signature operations using the new “Sigchecks” method. There is also the IFP code, which remains in the Bitcoin ABC codebase but won’t be used with the Bitcoin Cash Node (BCHN) project. Developers who worked on the BCHN chain have noted that regardless of whether the Infrastructure Funding Plan (IFP) is voted in, the implementation was built to follow the longest chain.
- Draft May 2020 Protocol Upgrade Specification.
Draft Specification for OP_REVERSEBYTES.
Draft Specification for Sigchecks.
Miner Infrastructure Funding Plan.
About a week ago, the developers behind the BCHN project published its technical bulletin written by Calin Culianu. Prior to publishing the bulletin the BCHN project reached 100% of its Flipstarter funding goal 12 days before the cutoff date. On May 11, the development team from Bitcoin Unlimited tweeted to the public reminding people they need to upgrade their nodes. “Upgrade your Bitcoin Cash node before May 15th,” the development team wrote.
Users can download the latest Bitcoin Unlimited implementation here and the team is offering advice on how to upgrade your node via the BU Telegram channel. Bitcoin ABC node runners can download the latest ABC release here and BCHN users can get a copy of the Bitcoin Cash Node implementation here. Full node operators can also download the latest BCHD software, Flowee the Hub, Knuth, and Bitcoin Verde.
At the time of publication, there are 1,414 public nodes running on the Bitcoin Cash network. 632 of them are using Bitcoin ABC according to Coin Dance statistics, 689 nodes are running BU. BCHN has 62 nodes today, and there are 31 other nodes running BCHD, Flowee, Verde, and Knuth. Coin Dance also reveals that the Bitcoin Cash IFP did not reach the required threshold and “is not expected to activate before the May 15th deadline.” Right now there’s around 1.8 exahash of proof-of-work hashing power securing the Bitcoin Cash chain. With only three days left and about a month after the BCH halving, BCH supporters will be watching the next upgrade very closely.
What do you think about the next BCH upgrade scheduled for May 15? Let us know in the comments below.
Amaury Séchet, BCH, Bchd, BCHN, bitcoin cash, Bitcoin Cash blockchain, Bitcoin Cash Node, Bitcoin Unlimited, C. Edward Kelso, Chain Limit, Flipstarter, Fork, IFP, May 15, OP Reversebytes, Opcode, Podcast, Sigchecks, Upgrade, Verde
Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.
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Author: News by Jamie Redman
Firm With Ties To Former ‘Sheriff Of Wall Street’ Discloses $140 Million Bitcoin Fund
Andrew Cuomo, then attorney general for New York state, center, and Benjamin Lawsky, then assistant … [+] U.S. attorney, left, and Eric Corngold, then-deputy attorney general for Economic Justice, hold a 2008 news conference on Wall Street in New York.
New York Digital Investment Group (NYDIG) today disclosed it has sold nearly $140 million in a previously unknown bitcoin fund. The New York Company, granted a BitLicense from the state in 2018, revealed the fund in a Form D filing for exemption to the U.S. Securities and Exchange Commission dated today.
Formally called the NYDIG Bitcoin Yield Enhancement Fund LP, the fund began selling just a week ago, on May 5, according to the documents. Described as a pooled investment fund, meaning multiple investors participated in the capital raise, the investment group requested its exemption under Rule 506(b) of the Regulation D safe harbor protections established in 2013.
While little is known about the new yield enhancement fund, an earlier NYDIG investment called the Bitcoin Strategy Fund was advised by Stone Ridge Asset Management LLC, a $15 billion advisor with ties to Ben Lawsky, who created the same BitLicense granted to NYDIG and who formerly served as co-chair of New York Governor Andrew Cuomo’s Cyber Security Advisory Board. Forbes has reached out to both NYDIG and Stone Ridge for comment.
Lawsky, who was previously New York State’s superintendent of financial services, is listed as Stone Ridge’s head of Regulatory Affairs. He became known as the “Sheriff of Wall Street,” after issuing $6 billion in fines to financial institutions during his tenure starting in May 2011. In June 2015 Lawsky left his state post and the following month formally launched the Lawsky Group, to advise those navigating financial services regulation. While the Lawsky Group has been largely quiet over the years, Lawsky spoke out shortly after the company’s formation to deny any conflict of interest.
While Lawsky still lists his title as CEO of Lawsky Group on LinkedIn, it remains unclear when exactly he joined Stone Ridge. Stone Ridge was founded in 2012 to provide investors with alternative risk exposures in reinsurance, volatility, and alternative lending. In December 2019, the SEC approved the NYDIG Bitcoin Strategy Fund, a portfolio fund in the Stone Ridge Trust VI, for cash-settled bitcoin futures contracts advised by Stone Ridge. At the time of publication, it is unclear whether or not Stone Ridge is also advising the newly revealed fund.
However, the connections remain strong. Stone Ridge co-founder Robert Gutmann is listed as the CEO of NYDIG Execution LLC in a 2018 statement from the New York Department of financial services, approving the firm’s application for a BitLicense and for its subsidiary NYDIG Trust Company LLC to operate as a limited purpose trust company. NYDIG’s site says it builds and manages custom funds and serves as a qualified custodian of bitcoin, ether, XRP, litecoin, and bitcoin cash.
News of the new bitcoin fund comes amid a number of recent developments showing increased comfort on behalf of the financial establishment with the alternative asset. Today the Wall Street Journal reported that JP Morgan had opened its first two bank accounts for cryptocurrency exchanges Coinbase and Gemini. Last week, investment firm 3iQ announced it had raised $48 million for an exchange-traded product on the Toronto Stock Exchange.
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Author: Michael del Castillo