Bitcoin number 18 million is broken this Friday and only 3 million remain to be broken. Of these 18 million, many have been lost. It is estimated that these lost bitcoins could amount to 5 or 6 million. Maybe more if we include Satoshi's millions of bitcoins. If Satoshi Nakamoto died and did not leave his key to anyone, this million cannot be recovered. This means that Bitcoin is much scarcer than what is officially registered. In May 2020, the block's benefits will go from 12.5 to 6.25 coins. All of this happens when the hash rate breaks historical records and the difficulty levels of mining are causing havoc among miners.
The price moves in a very narrow strip around $ 8,000 (well below the historical maximum). Buyers and sellers have been in full battle all week, but we have not yet seen a winner. Thursday's small improvement disappeared within a few hours. Right now we are walking on a very delicate ice. Everything can happen. Now let's talk about this week's most popular crypto news.
The mining operations are closely related to the price of Bitcoin. It is not just that miners need a good price to get a profit. We also have a situation that the mining operations themselves are exerting a bearish pressure. Here is a great paradox. Miners need high prices to survive. But mining stimulates the fall in prices. Bitcoin mining costs money. Equipment and certain conditions are required to undermine. Above all, electricity is a huge cost. In order to be profitable for miners, the Bitcoin market price must be higher than the production price. On the other hand, new bitcoins, which are generated in each block and given to the miners as a reward, increase the supply and thus dilute the value of Bitcoin. The other thing is that because miners have to sell some of their bitcoins to pay their commitments, which are usually in fiat money, these sales lower the price.
Many miners have said that if prices continue to fall, they will have no choice. So turn off the machines. But mining equipment manufacturers sell machines until they can no longer and the hash rate is for heaven. This situation seems contradictory at first glance, but it does have an explanation. Recently, extremely powerful new models have been released. Miners buy these machines, despite the price and the difficulty, because they want to generate bitcoins before the next half. The issue will be complicated after halving when the reward is cut in half. Of course, this will be a very hard blow for many miners. Especially for the smallest miners who will suffer enough during this period. But pelphing has historically stimulated a price increase. It did not happen immediately after halving. However, the year after the half year has always been good. Manufacturers of mining equipment probably want to cheer their customers with optimistic predictions. Because it's not so easy to say.
Many experts talk about a possible global crisis. In the last decade, the world economy has developed very well, but we are already seeing signs of a slowdown. It is true that liquidity levels are very high and the debt is in the clouds. But inflation has been under control, since there is production. Anyway, the situation is very delicate and at any time we get into a crisis. This leads us to a very controversial debate. This is the debate about the connection between Bitcoin and other markets. That is, will Bitcoin be used as a cover? That is, will it be a safe haven from the crisis?
Bitcoin was created to serve as an alternative system to the current system. So it is natural for many to think that in a crisis it is the perfect refuge. But that's the theory. It remains to be seen how his achievements are in practice. The detail is that investors during a crisis tend to avoid risks. Bitcoin has grown a lot but during a boom period, not in a crisis period. Its high volatility presents an opportunity, but also a danger. This requires investors with extra capital and willing to take risks. During a crisis, these types of investors do not overflow. But, time will show us how Bitcoin behaves in a crisis like 2008. Everything else is rhetorical.
Charles Hoskinson has been involved in many projects. Participate for a while and then, for some reason, leave and take another one. Now it's in Cardano, a kind of new Ethereum. Charles is not very charismatic, but his technical skills inspire respect. I must admit that your companies do not get my attention. But I hear it sometimes because their opinions are usually very reasonable. On October 1
"One of the biggest problems with Bitcoin is that it is blind, deaf and stupid, and it was by design," he said. Then he delved into a lot more and criticized Bitcoin maximism. Commenting on what Charles said. Okay. If Bitcoin fails, the system fails. It is clear that the other cryptocurrencies are terribly affected. It would be a miracle if anyone survives. It is clear that Bitcoin needs to adapt to survive. It's true. It is also true that some maximists are just as intense and unbearable as a Jehovah's Witness who takes our door on a Sunday morning. However, bitcoin conservatism is largely responsible for its success. If everyone in the Bitcoin community was as changed as Charlie's friend, Bitcoin would have failed long ago.
The number of Bitcoin addresses containing more than a thousand BTC is increasing and reaching a level that was registered before 2014. It is good and bad at the same time. This is bad because it means that Bitcoin concentrates on few hands. Centralization is harmful because it involves greater systemic risks. That is, a small group has the power. Having many bitcoins facilitates handling. It also takes dynamism from the market. Suddenly, more addresses with smaller amounts are better than few addresses with large amounts.
Prior to 2014, miners were able to collect many bitcoins due to low mining difficulties and low prices. So it enabled a larger accumulation of bitcoins in some portfolios. After 2014, many small investors arrived and it helped to concentrate the system. Now that trend is obviously reversing as large capitals start investing. The question of centralization can be bad. However, it can be good in another aspect. Large capital can give Bitcoin greater stability. Large investors are more patient than small ones. They buy more and sell less. This can have a positive effect.
Apparently, Google has had its first success with quantum computing. The aircraft took flight, but it is not yet an intergalactic ship. The phrase that has been used can be confusing. "Quantum supremacy" is a phrase that affects, but is in fact too pompous and premature. Of course, advances in quantum computation cannot be underestimated. The first steps are very important. But we cannot forget that we are still at an early stage of the invention. There is still much work to be done. Quantum computers will undoubtedly be much more powerful than traditional computers. Today they are in their experimental phase, but in a short time they will surely work among us. This great force, in the wrong hands, can pose a security risk. It's true. But while quantum computation can be used to attack, it can also be used to defend. The developers of the crypto community can defend themselves against this good threat. We must adapt to the new reality. The new weapons are not the end of the war. They are simply a new scenario.