Category Archives: Satoshi Nakamoto
The Cult of Satoshi: Like its creator, BSV faithful are in it purely for the tech – CoinGeek
U.K. Judge James Mellors written ruling that Craig Wright isnt Satoshi Nakamoto, the pseudonymous author of the 2008 Bitcoin white paper, has (predictably) set off a celebratory deluge of dunking from the social media accounts of Wrights longtime critics.
But the reality is that the tweets and blog posts slamming Wright have never really stopped since Mellor issued his initial rulingin mid-March. And its unlikely that Mellors written ruling will mark the end of these attacks.
Because the fight against Wright was never about him. It was all about stopping further adoption of the BSV Blockchaintechnology he supports. Thats because BSV, unless sabotaged by external forces, poses an existential threat to the technologies promoted by the members of the Crypto Open Patent Alliance(COPA) that brought the suit against Wright.
Due to Wrights high profile, COPA appears to have elevated him into being BSV. Stop Wright, their thinking went, and BSV will be forced to follow him offstage. Their reasoning here was way off base, but that shouldnt be all that surprising given how badly they also misinterpreted Satoshis plan for Bitcoin.
COPAs members are in lockstep agreement that Bitcoindespite the white paper defining it as peer-to-peer electronic cashwas never intended to serve as a global currency. Instead, Bitcoin was meant to be digital gold that doesnt do anything beyond (allegedly) perpetually increase in value. Thats the mindset that led the developers at BTC Core to strip the Bitcoin protocol down to its barest bones, resulting in the BTC token they promote with such zeal.
BSV supporters, on the other hand, believe that Bitcoinin the form of BSV, the only locked protocol that remains true to Satoshis original blueprint and can trace its unbroken history back to the Genesis blockcan easily serve as a low-cost digital payment system.
Furthermore, BSVs unparalleled ability to scale allows it to handle the immense data management needs of enterprises, government agencies and Web3 applications at a cost that makes such systems not just feasible but desirable.
Which is why COPA and other similarly deluded prospectors wont stop their attacks. By proving that Bitcoin is capable of delivering actual utility, disrupting both the ad-driven model of Silicon Valleys social media giants and the U.S.-based digital payment models, BSV offers a welcome alternative and exposes the rot at the core of these movements.
Utility v. futility
BTCs reputation took some serious hits this month due to the unprecedented direct attacks by Iran against Israel followed by Israels retaliatory strikes. In both instances, BTCs value cratered as sellers sought refuge in more stable products, aka fiat cash, directly undermining the safe haven mantra so relentlessly promoted by the digital gold team.
Take Michael Saylor, founder of COPA member MicroStrategy (NASDAQ: MSTR) and owner of around 1% of all the BTC that will ever be issued. With his entire net worth caught up in BTC, its perhaps no surprise that Saylor is the biggest booster of the digital gold myth, to the point that hes been accused of threatening to retaliate against anyone who dares suggest that BTC might be good for anything else.
Matt Odell, managing partner of BTC infrastructure investment outfit Ten31, recently posted a cryptic all-caps noteon decentralized social media protocol Nostr that claimed Saylor HAS ACTIVELY KILLED DEALS TO SUPPORT DEVS. HE IS PROUD OF IT.
Odell previously claimedthat ONE OF THE BIG ETFs [exchange traded funds] WAS GOING TO DONATE TO OPEN SOURCE DEVS. SAYLOR TOLD THEM IF THEY DID IT HE WOULD CRUSH THEM SO THEY PULLED OUT OF THE COMMITMENT.
Whatever the reality behind these claims, Saylor did go on CNBCseveral weeks prior to declare that people refer to [BTC] as a digital currency, and thats an unfortunate historical artifact. Saylor likened BTC to digital property and argued that BTC doesnt have to be a currency. Nobodys trying to buy a cup of coffee with a fraction of their building on Fifth Avenue.
Saylors defense mechanisms appear sufficiently robust to allow him to deny evidence that directly contradicts those beliefs. For instance, Saylor tweeted Chaos is good following Irans recent military strike against Israel, even as BTC shed more than 10% of its value.
The reality is that BTC is a hobbled former shell of Bitcoin and thats just the way everybody in BTC seems to want it. Well, they can have it. They can and will continue to talk about Wright, for all the good it will do them. No one in BSV is thinking all that much about COPA v Wright; the focus here is where its always been: real-world utility.
By contrast, the rest of the crypto sector is stagnant. Nobody wants to do anything but make lots of money in the shortest period possible without doing anything of benefit to anyone else. Relentless hype cycles drive tokens higher and instill FOMO in the general public, followed by the inevitable crash in which the noobs get rekt and the whole process resets.
Take the current memecoin madness on Solana. Its like the whole 2017 initial coin offering (ICO) debacle never happened. Except this time the coin issuers arent even bothering with white papers detailing how their project will change the world.
As Travis Kling remarked earlier this year, I actually think there is LESS expectation this time around that any of this shit does anything or will EVER do anything People want to gamble on vaporware and next year looks like a good year to be in the casino.
Cult following
COPA and its minions like to portray BSV as the Cult of Craig. If anyone is trapped in a Cult of Craig its COPA. Theyre the ones who cant seem to escape the hypnotic control he appears to wield over them.
It would be far more accurate to describe BSV as the Cult of Satoshi. BSV supporters seem to be the only ones that believe Satoshi was right and that when he departed the stage, he left us his blueprints, which are all we need to understand what were building and where were going.
COPA and their ilk all think Satoshi was wrong, that they know better the intentions behind his creation. BSV backers know that Satoshis vision was rooted in utilitybe it for low-cost microtransactions or data processingnot establishing a new category of financial elites.
If you really want to know why the BSV community was willing to listen to Wright in the first place, ask yourself this: who else at that time was advocating for a return to Bitcoins original vision? Who else was offering a utility-focused alternative to number go up?
The tires on a Formula 1 might be a wonder of modern technology but for all their engineering wizardry, nobodys really improved on the wheels original conceptor purpose. No ones trying to reinvent the wheel because reinvention is unnecessary if you got it right the first time. That is, unless youd prefer the wheel be some proprietary technology that only you control.
Perhaps its nave to believe that the world will ultimately coalesce around a single blockchain. But well keep working towards that goal regardless, based on our belief that when the world is ready, BSV will be there. Whatever Wrights faults, he will ultimately be vindicated as his faith in the original Bitcoin technology proves correct.
By staying true to the original Bitcoin protocol, BSV is the only blockchain that can rightly be labeled Bitcoin. As such, in a post-Mellor world, people have one of two options: believe the judge is wrong and Wright is Satoshi and Satoshi created BSV, or believe the judge is right and Wright is not Satoshi and Satoshi created BSV. Either way, Satoshi invented Bitcoin and BSV is the worlds only enterprise blockchain.
Well leave you with a quote from this sites founder, Calvin Ayre:
An English court has concluded that Craig is not Satoshi. Despite this, the fact remains that Craig was a driving force behind realizing Satoshis vision through the BSV blockchain. He was the only individual that seemed interested in fulfilling Satoshis vision of a scalable blockchain that enabled low-cost peer-to-peer payments.
We accept the decision that COPAs mysterious unknown Satoshi invented BSV because its never really mattered to us who Satoshi was. All that matters is the amazing vision he/she had. The further development of that vision will ensure that the technology writes the true historyas well as the future. Long live Satoshi.
New to blockchain? Check out CoinGeeks Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.
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The Cult of Satoshi: Like its creator, BSV faithful are in it purely for the tech - CoinGeek
Aussie Who Said he Invented Bitcoin Lied on ‘Grand Scale’: Judge – Asia Financial
A judge at Londons High Court ruled on Monday that a computer scientist who said he invented Bitcoin lied extensively and repeatedly and forged documents on a grand scale to support a false claim.
Australian Craig Wright had long claimed to have written the foundational text of bitcoin a 2008 white paper published under the pseudonym Satoshi Nakamoto.
But Judge James Mellor ruled in March that the evidence Wright was not Satoshi was overwhelming, after a trial in a case brought by the Crypto Open Patent Alliance (COPA) to stop Wright suing bitcoin developers.
Mellor gave reasons for his conclusions on Monday, stating in a written ruling: Dr Wright presents himself as an extremely clever person. However, in my judgment, he is not nearly as clever as he thinks he is.
The judge added: All his lies and forged documents were in support of his biggest lie: his claim to be Satoshi Nakamoto.
Judge Mellor said that Wrights actions in suing developers and his expressed views about bitcoin also pointed against him being Satoshi.
Wright, who denied forging documents when he gave evidence in February, said in a post on X: I fully intend to appeal the decision of the court on the matter of the identity issue.
COPA whose members include Twitter founder Jack Dorseys payments firm Block described Mondays ruling as a watershed moment for the open-source community.
Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.
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Aussie Who Said he Invented Bitcoin Lied on 'Grand Scale': Judge - Asia Financial
Bitcoin User Loses $7,000 by Sending to Satoshi’s Address – BeInCrypto
A Bitcoin (BTC) user made a blunder by accidentally sending almost his entire BTC balance to an address associated with Satoshi Nakamoto, the enigmatic creator of Bitcoin.
According to the on-chain analytic platform Arkham Intelligence, the user was trying to sacrifice an ordinal for PUPSa BRC-20 meme coin in the Bitcoin blockchain.
However, the user incorrectly entered Satoshi Nakamotos address instead of the intended one. As a result, they sent over $7,000 worth of BTC to an address that has been inactive for years.
The accidental transfer has reignited speculation about Satoshi Nakamotos identity and the fate of the Bitcoin stored at his address. The associated address contains a significant amount of BTC.
Read more: Satoshi Nakamoto Who is the Founder of Bitcoin?
Arkham Intelligence data reveals that the wallet now has a balance of 100.424 BTC, valued at $6.72 million at the time of writing. The address has remained untouched since Bitcoins creation in 2009. Currently, there is no indication that the BTC sent in this incident is accessible or moving, maintaining the status quo of inactive addresses.
The crypto communitys reaction to the bug has been a mix of sympathy and astonishment. Some feel pity for the user who lost a considerable amount of money without the possibility of recovery. On the other hand, others hypothesize that this surprising movement has a direct connection to Bitcoins creator.
What if it wasnt a mistake? What if its someone doing business with the real Satoshi? Or maybe even it is him, a crypto community member speculated.
Read more: Who Owns the Most Bitcoin in 2024?
Despite the speculation, this incident serves as a reminder of the importance of carefully verifying transaction details, especially in the crypto space, where a single mistake can have irreversible consequences. Crypto users should always double-check addresses and fully understand the process before sending any funds.
Disclaimer
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Bitcoin User Loses $7,000 by Sending to Satoshi's Address - BeInCrypto
UK Judge Slams Craig Wright, Says Scientist Lied ‘Extensively’ About Being Bitcoin Creator – WebProNews
UK Justice James Mellor minced no words slamming Dr. Craig Wright, a computer scientist who has tried to prove he is Bitcoin creator Satoshi Nakamoto.
Wright has claimed for years to be Nakamoto, taking his claims to court in an effort to be legally recognized as Bitcoins creator and reap the financial rewards that would come with the recognition. Justice Mellors ruling came in the civil trial brought by Crypto Open Patent Alliance (COPA) aimed at disproving Wright is Nakamoto and crippling his ability to continue suing crypto companies.
Thus, Dr Wright presents himself as an extremely clever person, Justice Mellor wrote. However, in my judgment, he is not nearly as clever as he thinks he is. In both his written evidence and in days of oral evidence under cross-examination, I am entirely satisfied that Dr Wright lied to the Court extensively and repeatedly. Most of his lies related to the documents he had forged which purported to support his claim. All his lies and forged documents were in support of his biggest lie: his claim to be Satoshi Nakamoto.
Many of Dr Wrights lies contained a grain of truth (which is sometimes said to be the mark of an accomplished liar), but there were many which did not and were outright lies, Justice Mellor added. As soon as one lie was exposed, Dr Wright resorted to further lies and evasions. The final destination frequently turned out to be either Dr Wright blaming some other (often unidentified) person for his predicament or what can only be described as technobabble delivered by him in the witness box.
Interestingly, after hearing the mountain of evidence submitted in the trial, Justice Mellor has his own opinion on the age-old question of whether Nakamoto is a single individual or if the pseudonym was used by a group of people.
Satoshi Nakamoto was and remains a pseudonym, he wrote. Although this is not of any significant weight in my overall conclusion, my personal view, having heard all the evidence in this Trial, is that it is likely that a number of people contributed to the creation of Bitcoin, albeit that there may well have been one central individual. It would therefore be accurate to refer to Satoshi as he/she/they to reflect the possibilities, but unwieldy. I will therefore refer to Satoshi simply as he, but it is a shorthand for he/she/they.
Needless to say, Wright has already indicated he intends to appeal the ruling.
I fully intend to appeal the decision of the court on the matter of the identity issue. I would like to acknowledge and thank all my supporters for their unwavering encouragement and support. In the meantime, I shall continue to work closely with the Teranode team to achieve scaling beyond three million transactions per second. At present, Teranode is achieving one million tps and we are ensuring that the cloud-based server configurations function correctly in a way that does not impact scaling. However, even at a lower level of transaction processing, Teranode is far more efficient than the existing node structure and will lead to cost savings as well as a path to scalability.
^Posted by LB on behalf of CSW.
Dr. Craig S Wright (@Dr_CSWright) | May 20, 2024
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Satoshi Missed ‘Big Opportunity’ Avoiding This Date for Bitcoin Halving: Anthony Pompliano – Investing.com
U.Today - Venture investor, founder of Pomp Investments private credit fund Anthony Pompliano has taken to his X account to send a message about Satoshi Nakamoto and the Bitcoin halving to his numerous followers.
He jokingly tweeted that the enigmatic Bitcoin founder Satoshi Nakamoto missed a big opportunity to set the halving day as April 20. This day is known as the weed day and more recently, as the Day, even though the iconic meme cryptocurrency was not released in April.
Thus, Pompliano implied that Satoshi Nakamoto had missed an opportunity to integrate its brainchild even deeper into the minds of average people. Bitcoin was made to oppose fiat money and the traditional banking system in the first place, but weed has been known to be a symbol of opposing the system for decades now. It has been also legalized in many countries already.
Image via XUsers tweeted that for the aforementioned countries, the halving took place not on April 19 but on April 20. One user tweeted that Satoshi Nakamoto was based in Europe, therefore he certainly kept that 4/20 day in mind.
Numerous cryptocurrency platforms, including one of the most popular meme coins Floki, have published tweets to congratulate their communities on the Dogecoin day.
This article was originally published on U.Today
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Fundamental Satoshi Nakamoto Statement Revealed From Hidden Emails – Investing.com
U.Today - An early contributor, Martti Malmi, has shared a collection of previously undisclosed emails with Satoshi Nakamoto. These emails shed new light on Bitcoin's early days and Nakamoto's philosophical approach to the digital currency.
Key among these insights is Nakamoto's perspective on Bitcoin as primarily a medium of exchange, not merely an investment vehicle. He highlighted the energy efficiency of Bitcoin's proof-of-work mechanism compared to traditional banking, addressing environmental concerns before they became a major talking point.
Bitcoin/USD Chart by TradingViewNakamoto's email from May 2, 2009, commends Malmi for grasping Bitcoin's potential, mentioning that linking Bitcoin to fiat currencies could boost its value a topic he was hesitant to discuss publicly until the right moment. He also stressed the importance of preparing for an influx of users, anticipating widespread adoption.
Furthermore, Nakamoto envisioned Bitcoin's ability to scale up to handle transaction volumes much larger than those handled by conventional financial systems, at a fraction of the cost. He assured that as the network grew, it would become more secure, dismissing early vulnerabilities as minor startup issues.
Another interesting and somewhat funny detail from the emails is Nakamoto's request for help with website content. This humanizes the often mythologized figure of Nakamoto, showing his willingness to collaborate and delegate.
Bitcoin-like encryption, backups and user-friendliness were also topics of discussion. They have shown that Nakamoto is committed to making Bitcoin accessible and secure for masses.
These email exchanges enrich the narrative around Satoshi Nakamoto and Bitcoin's origins and provide more interesting details, which, when analyzed, may shed more light on Nakamoto's secret identity. For now, only one thing is clear: Satoshi Nakamoto's vision is close to what we have today, despite the continuous evolution of Bitcoin.
This article was originally published on U.Today
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Fundamental Satoshi Nakamoto Statement Revealed From Hidden Emails - Investing.com
Bitcoin’s halving is a major spectacle that’s the whole point – Blockworks
The Bitcoin halving is imminent.
But even if you know what it is, you may not know why it is.
In our view, the halving exists to make bitcoin interesting and interesting things attract attention. Bitcoins pseudonymous inventor, Satoshi Nakamoto, could have chosen a boring issuance schedule. Instead, he imbued bitcoin with a seasonal fireworks display, commanding attention from an increasingly wide and diverse group of bitcoin users.
Bitcoin famously has a supply cap of 21 million, 1.3 million of which remain unminted.The network will mint these coins through the year 2140 in the same way bitcoins have always been minted.
Satoshi designed the system himself to reward miners who publish new blocks. He could have designed those rewards to hold steady over time with a constant amount per block, say 10. Or he might have designed the rewards to decrease steadily at a constant rate.
Read more: Why is 2140 the end of bitcoin inflation?
Satoshi instead chose halvings. Every 210,000 blocks, the block reward suddenly drops by half. The first 210,000 blocks each yielded 50 new bitcoin to the miner; the next 210,000 blocks yielded 25; and so on. Tomorrow, and for the next four years, each block will yield 3.125 bitcoin.
By their very nature, halvings bring an economic shock, especially to miners. Block 840,0001 will appear roughly ten minutes after block 840,000. But the miner of block 840,000 will earn $400,000 worth of new bitcoin, while the miner of block 840,001 will earn only $200,000 worth of bitcoin at todays prices, anyway.
Bitcoins volatility owes, in part, to its halving schedule. If demand remains relatively constant despite a sudden drop in newly available bitcoin, bitcoins price will likely increase. At least, thats what has happened historically.
The dollar price of bitcoin increased 5,000% between the first and second halving, from $12.53 in November 2012 to $640 in July 2016; 1,300% between the second and third halving, from $640 in July 2016 to $9,000 in May 2020; and 700% between the third and fourth halving, from $9,000 in May 2020 to $70,000 in April 2024. Of course, bitcoins price has also crashed many times during those periods. Like the weather, demand is a fickle thing.
Read more from our opinion section: Bitcoins most promising, least dramatic halving is almost here
Halvings also spark discussions about bitcoins price volatility in the short term and price trajectory in the long term. Each halving brings up the same inevitable question, especially considering past wild post-halving price swings: What will we see this time? For weeks now, TV networks have been interviewing CEOs and bitcoin thought leaders about the potential impact that the halving might have on bitcoins price.
We think Satoshi anticipated the potential for this kind of frenzy, and deliberately chose the four-year halving cycle to attract attention to bitcoin.
Satoshi was familiar with the idea of global spectacles that happen every four years. The World Cup and the Olympics garner massive attention especially from people who otherwise rarely watch sports! Would you watch the Olympics annually? Monthly? Not likely. These events garner interest partly because of their rarity. The interval allows for hype, and interest, to build. Networks run specials on the athletes expected to make a splash. Magazines run photo spreads. And when the opening ceremonies finally broadcast, three billion people watch worldwide.
Satoshi was a master promoter. He designed logos, built chat forums and schemed with users on those forums about how to stir up interest in bitcoin. He also designed a system to capture interest by being interesting.
Compare bitcoin to gold. Gold has a global brand earned over millennia. But whens the last time gold mining caught major headlines? If we mined an asteroid for gold or discovered that we had mined every last nugget that would capture attention. As things stand, however, gold mining is steady, predictable and unremarkable. Bitcoin is predictable, too. Yet it is predictably unsteady, especially with halvings thrown in, and thus remarkable.
Bitcoin is much younger than gold, with just 15 years since its creation. Yet bitcoins quadrennial halving events and corresponding price fluctuations garner headlines worldwide. Interest has snowballed with every halving, as have new users. Thats the goal.
Bitcoin halvings are spectacles, by design. And the design seems to be working. After all, it brought you to this article.
The authors are co-authors of the forthcoming academic book Resistance Money: A Philosophical Case for Bitcoin (Routledge Press).
Andrew M. Bailey is an interdisciplinary teacher and scholar whose work spans philosophy, politics, and economics. He is Associate Professor of Humanities at Yale-NUS College (Singapore).
Bradley Rettler is Associate Professor of Philosophy at the University of Wyoming, and has published peer-reviewed academic articles on metaphysics, philosophy of religion, epistemology, and cryptocurrency
Craig Warmke researches money at the intersection of philosophy, economics, and computer science. He is Associate Professor of Philosophy at Northern Illinois University.
Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.
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Bitcoin's halving is a major spectacle that's the whole point - Blockworks
Satoshi Nakamoto Was Concerned Over Bitcoin as an Investment: Report – Investing.com Nigeria
Coin Edition -
Amidst controversies regarding the identity of Bitcoins pseudonymous founder, Satoshi Nakamoto, 120-page email correspondence between Nakamoto and his earlier collaborator, Martti Malmi, shed light on the early days of Bitcoin creation.
Recently, Chinese crypto journalist Colin Wu, on his official page known on X as Wu Blockchain, shared insights on the emails shared by Malmi earlier this year, initially produced as evidence against Craig Wrights claim to be the original Bitcoin founder.
As per Colin Wus X post, the conversation between Nakamoto and Malmi indicated Nakamotos concerns over identifying Bitcoin as an investment. In a previous X post, Wu highlighted Nakamotos earlier warning against Bitcoins significant energy consumption. In addition, Nakamotos concern over labeling Bitcoin as an investment also gained traction at the time. His recent post further stated,
Further, Wu pinpointed Nakamotos insistence on not promoting anonymity. Nakamotos email read,
On February 23, Martti Malmi took to X to draw the communitys attention to the 2009-2011 email correspondence between Malmi and Nakamoto. He added that he wasnt initially comfortable with making the emails public, but Wrights trial has forced him to produce it as evidence.
However, the emails do not stand as significant evidence to prove Satoshi Nakamotos real identity. But, the conversation could significantly provide insights into Bitcoin creators vision and concerns.
The post Satoshi Nakamoto Was Concerned Over Bitcoin as an Investment: Report appeared first on Coin Edition.
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Satoshi Nakamoto Was Concerned Over Bitcoin as an Investment: Report - Investing.com Nigeria
Bitcoin is halving again what does that mean for cryptocurrency and market? – Aju Press
Now a hotly anticipated recurring event that happens roughly every four years is taking place: the bitcoin halving. This could have further significant impact on the value of the cryptocurrency.
To understand what the halving is and what it could mean, we have to understand how bitcoin works. Bitcoin is a digital currency that makes use of what's called blockchain technology to securely store, record and publicly publish all transactions.
It is distinct from fiat currencies, such as dollars or pounds, because it has no central authority and members of the network have equal power. Each transaction is made and recorded with the user's public address, a code that enables them to remain anonymous.
Bitcoins are created by so-called miners who contribute computing power to secure the network and solve complex mathematical puzzles in order to process transaction data. These miners are then rewarded for their work with newly minted bitcoins.
The idea for bitcoin was first proposed in a white paper published online in 2008 by a mysterious individual or group using the pseudonym Satoshi Nakamoto. To combat inflation, Nakamoto wrote into the code that the total number of bitcoins will only ever be 21 million. Currently, more than 19.6 million bitcoins have been mined.
At the beginning, back in 2009, miners received 50 bitcoins for every block (unit of transaction data) they mined. But after every 210,000 blocks (roughly every four years), the reward halves.
So in 2012 the reward fell to 25 bitcoins, then to 12.5 bitcoins in 2016 and to 6.25 bitcoins in 2020. The latest halving means the reward will be just 3.125 bitcoins.
Why does bitcoin halve?
Nakamoto has never explained explicitly the reasons behind the halving. Some speculate that the halving system was designed to distribute coins more quickly at the beginning to incentivise people to join the network and mine new blocks. Block rewards are programmed to halve at regular intervals because the value of each coin rewarded is deemed likely to increase as the network expands.
But this may lead to users holding bitcoin as a speculative asset rather than using it as a medium of exchange. Additionally, the 21 million cap on the number of coins that can enter circulation makes them scarce (at least in comparison to dollars or euros), which for some people is enough to make them valuable.
So what impact does the halving have on the price? After the halving, the number of new bitcoin entering circulation shrinks. Demand should, in theory, be unaffected by this event and therefore the price should go up.
"The theory is that there will be less bitcoin available to buy if miners have less to sell," said Michael Dubrovsky, a co-founder of PoWx, a crypto research non-profit. While the first halving happened in 2012, when bitcoin was less well known and quite hard to buy and sell, we can learn from the subsequent two halvings.
The second halving on July 16 2016 was highly anticipated. The price dropped by 10 percent, but then shot back up to where it had been before. Although the immediate impact on the price was small, bitcoin did eventually respond and some argue that the 2017 bull run when the market boomed was a delayed result of the halving.
Beginning the year around US$900, by the end of 2017 bitcoin was trading above US$19,000. The third halving in 2020 happened during a bullish period for bitcoin and it continued to rise to more than US$56,000 in 2021.
Making an asset of scarcity
These few data points are not enough however to offer any concrete causal relationship or trend. But we do know that instantly miners' rewards are halved, meaning their revenue immediately halves and their profit margins are severely affected. Consequently, unless there is a price appreciation, many miners may become unprofitable and could cease the practice.
Bitcoin's scarcity is arguably one of its most significant characteristics, especially in a time of high inflation, quantitative easing and high interest rates. With the real value of fiat currencies falling, bitcoin's limited supply is an attractive feature and can be reassuring for investors.
Bitcoin hit an all-time high in February following the approval of bitcoin exchange-traded funds, which effectively make it easier for retail investors and big banks to invest in bitcoin.
This, coupled with a more favorable regulatory environment on the horizon and the fact that it is becoming more integrated in the financial system, means bitcoin may continue on the rise it has experienced in 2024 so far.
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Andrew Urquhart is a professor of Finance & Financial Technology, ICMA Centre, Henley Business School at University of Reading in England.
This article was republished under a Creative Commons license with The Conversation. The views and opinions in this article are solely those of the author.
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Bitcoin is halving again what does that mean for cryptocurrency and market? - Aju Press
New emails reveal Satoshi Nakamoto’s original vision for Bitcoin – Cryptodnes.bg
A recent set of emails between Satoshi Nakamoto, the pseudonymous founder of Bitcoin, and one of the cryptocurrency's early adopters, Marty Malmi, shed light on the digital currency's initial philosophy and initial operational problems.
These emails, discovered during legal proceedings involving Craig Wright, reveal Nakamoto's specific goals for Bitcoin, specifically his concern that it would be perceived as a speculative asset and his concerns about anonymity.
The leaked e-mail conversations show that Nakamoto had reservations about classifying Bitcoin primarily as an investment. This perspective is important because it underscores his view of Bitcoin as a means of payment and not solely as a speculative tool. This distinction underscores Bitcoin's utility for transactions without the need for a trusted third partya key feature of its creation.
Another highlight of the announcement is Nakamoto's attitude to anonymity. Contrary to popular belief that Bitcoin itself is an anonymous network, Nakamoto recommends a cautious approach to anonymity. He suggested that while Bitcoin offers the possibility of anonymity, the community needs to recognize its shortcomings in this regard.
In his emails, he presents a thoughtful concept of privacy that takes into account the real presence of these technologies, including their characteristics and limitations. This approach not only avoids potential legal and moral complications, but also helps create a high-quality user base.
Nakamoto also shed light on the environmental impact of Bitcoin's proof-of-work (PoW) system. He was aware of early criticisms about the mechanism's energy consumption, but even then he pointed to PoW's energy efficiency compared to traditional banking systems.
In addition, Nakamoto expresses confidence in the scalability of Bitcoin, which can handle volumes several times larger than those of traditional financial systems, but at a much lower cost. These moments demonstrate his foresight and willingness to tackle future challenges that will eventually become the subject of debate among crypto advocates.
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New emails reveal Satoshi Nakamoto's original vision for Bitcoin - Cryptodnes.bg