Why will there never be more than 21,000,000 Bitcoin?

US elections and stock market correction

PULLACH (DJE Kapital AG) – Dr. Ulrich Kaffarnik talks to the financial journalist Markus Koch about the upcoming US elections, the recent stock market correction in September and a possible sector rotation – and this against the background of internationally increasing corona infections.
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PayPal brings Bitcoin to the masses and more and more companies and investment funds have started to hodln. There will never be more than 21 million BTC. Why that is so, Satoshi Nakamoto himself calculated at that time.

When choosing the number, did Satoshi consider that 21 is „the smallest positive natural number for which squares exist in pairs of different positive edge lengths that can be put together to form a square? Or was the pseudonymous Bitcoin founder aware of the symbolic nature of the esoteric circles of 21 – among other things as the number of completion? Or did, as so often in life and at the scene of a crime, colleague „coincidence“ have his fingers in the pie?

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Indeed, the Bitcoin White Paper does not yet mention a limit of 21 million. Only with the mail in which Satoshi published the Bitcoin White Paper did the 21 million become official:

The total circulation will be 21,000,000 coins. It will be distributed to network nodes as they form blocks, with the amount halved every four years
every 4 years.

  • the first 4 years: 10,500,000 coins
  • the next 4 years: 5,250,000 coins
  • next 4 years: 2,625,000 coins
  • the next 4 years: 1,312,500 coins
  • etc…

When this expires, the system can support transaction fees if needed. It is based on open competition, and there will probably always be nodes willing to process transactions for free.

So why 21 million? As you can see from the mail traffic between Satoshi and Mike Hearn, another early Bitcoin developer, the number has a pragmatic rather than a metaphysical background:

My choice for the number of coins and the distribution plan was based on an estimate. It was a difficult decision, because once the network is up and running, it is fixed and we have to accept that. I wanted to choose something where the exchange rates are similar to existing currencies, but without knowing the future, it is very difficult.

Satoshi was looking for the golden mean: whether Bitcoin should remain a niche or be a big success, the limit should allow for numbers that are not too bulky in either case. Sathoshi explains the calculation to Mike Hearn like this:

If you imagine that [Bitcoin] is only used for a fraction of world trade, there will only be 21 million coins for the whole world, so one unit would be worth much more. The values are 64-bit integers with 8 decimal places, so 1 coin is internally represented as 100000000. There is a lot of granularity when typical courses become small. For example, if 0.001 [Bitcoin] is worth 1 Coin, it might be easier to change the position of the decimal point.

21 million: of all things.

Perhaps it was not the 21 million BTC per block, but the 50 BTC per block – in conjunction with the target block time of 10 minutes – that was at the beginning of the considerations. The 21 million is also a mathematical consequence. It is obtained by multiplying the number of blocks produced (210,000 per year) by the sum of the halving rewards (50+25+12.5+…0 ≈ 100). The question remains what was there first – the limit or the mining protocol.

Wat is Crypto Arbitrage en hoe werkt het?

Met tientallen miljarden aan cryptocurrency die van eigenaar wisselen tussen beurzen, nemen sommige handelaren winst door ze tegen elkaar uit te spelen.

Crypto-arbitrage maakt gebruik van het feit dat cryptocurrencies op verschillende beurzen verschillend geprijsd kunnen worden

Arbitrageurs kunnen handelen tussen beurzen of driehoeksarbitrage uitvoeren op een enkele beurs.
Risico’s verbonden aan arbitragehandel zijn onder meer ontsporing, prijsbewegingen en transferkosten.
Elke dag wisselen tientallen miljarden dollars aan cryptocurrency van eigenaar in miljoenen transacties. Maar in tegenstelling tot traditionele aandelenbeurzen zijn er tientallen cryptocurrency-beurzen, die elk verschillende prijzen voor dezelfde cryptocurrencies weergeven.

Voor slimme handelaars – en degenen die niet vies zijn van een klein risico – biedt dat de mogelijkheid om een ​​voorsprong te nemen op hun landgenoten: speel deze uitwisselingen tegen elkaar. Welkom in de wereld van crypto-arbitrage.

Wat is crypto-arbitrage?

Crypto-arbitrage is een handelsstrategie die profiteert van hoe cryptocurrencies op verschillende beurzen anders worden geprijsd. Op Coinbase kan Bitcoin Trader $ 10.000 kosten, terwijl het op Binance $ 9.800 kan kosten. Het benutten van dit prijsverschil is de sleutel tot arbitrage. Een handelaar zou Bitcoin kunnen kopen op Binance, het naar Coinbase kunnen overbrengen en de Bitcoin kunnen verkopen, met een winst van ongeveer $ 200.

Snelheid is de naam van het spel – deze hiaten duren meestal niet lang. Maar de winsten kunnen enorm zijn als de arbitrageur de markt correct timt. Toen Filecoin in oktober 2020 op de beurzen kwam, vermeldden sommige beurzen de eerste paar uur de prijs voor $ 30. Anderen? $ 200.

Hoe werken cryptoprijzen?

Dus hoe krijgt cryptocurrency zijn waarde? Sommige critici wijzen erop dat cryptocurrency nergens door wordt ondersteund, dus elke waarde die eraan wordt toegekend, is puur speculatief. Het tegenargument is grofweg dat als mensen bereid zijn te betalen voor een cryptocurrency, die munt waarde heeft. Zoals de meeste onopgeloste argumenten, is er aan beide kanten waarheid.

Bij uitwisselingen speelt het spel zich af in orderboeken. Deze orderboeken bevatten aan- en verkooporders tegen verschillende prijzen. Een handelaar kan bijvoorbeeld een „koop“ -order plaatsen om één Bitcoin te kopen voor $ 10.000. Deze order zou in het orderboek komen te staan. Als een andere handelaar een bitcoin voor $ 10.000 wil verkopen , kan hij een ‚verkoop‘-order aan het boek toevoegen en zo de transactie vervullen. De kooporder wordt dan uit het orderboek gehaald zodra deze is gevuld. Dit proces wordt een ruil genoemd.

Bitcoin-punges opdateringstrick har nettet kriminelle mere end 22 millioner dollars

Kriminelle bander sender falske opdateringer til ejere af Electrum-tegnebøger, installerer malware og stjæler brugerfonde.

En simpel teknik har hjulpet cyberkriminalitetsbander med at stjæle mere end 22 millioner dollars i brugerfonde fra brugere af Electrum- pung-appen; en ZDNet- undersøgelse har opdaget.

Denne særlige teknik blev først set i december 2018 . Siden da er angrebsmønsteret blevet genbrugt i flere kampagner i løbet af de sidste to år

ZDNet har sporet flere Bitcoin-konti, hvor kriminelle har samlet stjålne midler fra angreb, de udførte i løbet af 2019 og 2020, hvor nogle angreb fandt sted så sent som i sidste måned, i september 2020.

Rapporter fra ofre sendt til Bitcoin-misbrugsportaler afslører den samme historie.

Brugere af appen Electrum Bitcoin-tegnebog modtog en uventet opdateringsanmodning via en popup-besked, de opdaterede deres tegnebog, og midler blev straks stjålet og sendt til en angripers Bitcoin-konto.

Ser man på, hvordan cyberkriminelle stjæler midler, fungerer denne teknik på grund af den indre funktion i Electrum-pung-appen og dens backend-infrastruktur

For at behandle eventuelle transaktioner er Electrum-tegnebøger designet til at oprette forbindelse til Bitcoin-blockchain gennem et netværk af Electrum-servere – kendt som ElectrumX.

Mens nogle tegnebogsprogrammer styrer, hvem der kan administrere disse servere, er tingene imidlertid forskellige i Electrums åbne økosystem, hvor alle kan oprette en ElectrumX gateway-server.

Siden 2018 har cyberkriminalitetsbander misbrugt dette smuthul til at spinde ondsindede servere op og vente på, at brugerne tilfældigt opretter forbindelse til deres systemer.

Når dette sker, instruerer angriberne serveren om at vise en popup på brugerens skærm, som instruerer brugeren om at få adgang til en URL og downloade og installere en opdatering til Electrum-tegnebogen.

Whales are accumulating at Bitcoin, according to analysis company Glassnode

Whales are accumulating, according to Bitcoin analysis company Glassnode. According to the data from on-chain analysis company Glassnode, the big fish in the bitcoin ocean are accumulating.

Since the crash of 13 March, the number of bitcoin addresses has increased by more than 1000 bitcoin. According to Glassnode’s analysts, this is an indication that more and more rich individuals are investing heavily in bitcoin.

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Whales expect price increase bitcoin
Glassnode’s data indicate that rich investors expect the bitcoin price to do well again in the short term. This is no surprise following the news from MicroStrategy and Square.

Earlier this week the bitcoin price collapsed somewhat after the news came out that the CFTC had sued BitMex. In the meantime, however, the price has recovered well.

Bitcoin analyst Willy Woo has his own explanation for the behaviour of the whales. According to the well-known analyst, the fundamentals have not been as bullish as they are today since mid-2016. „This is one of the few moments in my career that all the signs are that we are going to crash, but the market doesn’t seem to recognise it yet.

Is it going to happen in the coming months?
Peter Brandt, who in general can also express a negative opinion about the price of bitcoin, is also positive. On the higher timeframes, and therefore the more long term, it looks good for bitcoin, according to the experienced analyst.

Personally, I think that the news that Square, following MicroStrategy, has opted for bitcoin, in particular, could cause an enormous boost. Especially the blueprint that the company has written for other parties who are also interested in putting bitcoin on the balance sheet.

I understand Square’s move mainly because it can be a very interesting business for them to help companies with the adoption of a bitcoin standard.

Translated with www.DeepL.com/Translator (free version)