The 3rd Bitcoin halving is finally here! With the current instability in the market downfall, can Bitcoin identify its value in the market within the following crucial months?
Earlier in the day, the top-ranked digital asset on CoinMarketCap managed a quick 8% rally from $8,475 to $9,168 but it was quickly snuffed out once the price dropped below the support at $8,750.
Introduction:
When was Bitcoin created on the 3rd of Jan 2009, when Satoshi Nakamoto mined the first Genesis block also known as Bitcoin block (Block 0). The author of Bitcoin whitepaper, Satoshi Nakamoto published an online article titled Bitcoin, a peer-to-peer electronic cash system. He then released the Bitcoin white paper, the network officially launched when Nakamoto mined the first block, block 0 on January 3rd 2009, marking the birth of bitcoin’s underlying technology.
Who is the ”Real” Satoshi Nakamoto?
Who is this mysterious founder of bitcoin? Satoshi Nakamoto, the creator and developer of Bitcoin published the Bitcoin White Paper on November 1st, 2008 and mined his first Bitcoin on January 3rd, 2009. He was able to utilize the Bitcoins from the Genesis Block. Except for test transactions, Nakamoto’s coins remain unspent since mid January 2009. At bitcoin’s peak in December 2017, his coins were worth over US$19 billion.
Although on his 2012 P2P Foundation profile, Satoshi Nakamoto claimed to be a 37-year-old male who lives in Japan. Satoshi has yet to disclose any personal information. There were also many circulations that Satoshi may not be from japan after all. This is due to his perfect use of english and his bitcoin software not being documented or labelled in japanese.
Throughout the years, many people claimed to be the “real” Satoshi Nakamoto, however, there was no solid evidence to back up their statements. In 2014, hackers managed to access Satoshi Nakamoto’s email address and found the owner to be Dorian Nakamoto. However, Dorian Nakamoto stated that he had obtained the email address and password by chance, and that he’s not Satoshi Nakamoto.
In the recent 2016, an Australian computer scientist Craig Wright, claimed to be the real Satoshi Nakamoto and also claimed that he could provide the private key. However, Wright could not respond to all the doubts that were being expressed and reverted the statements. Till this day, the real identity of Satoshi Nakamoto has yet been known.
The Creation of Bitcoin
Satoshi Nakamoto, Bitcoin whitepaper author, produced the first block of Bitcoin, “The Genesis Block”, on a small server located in Helsinki, Finland. It was believed that the first block Satoshi mined was mined using a Windows-powered PC’s CPU. Satoshi Nakamoto then obtained the first 50 Bitcoins as a reward. Further, to commemorate the birth of Bitcoin, Nakamoto put that day’s headline of The Times article (Chancellor on brink of second bailout for banks) to authenticate the time as the birth of Bitcoin.
The headline “Chancellor on brink of second bailout for banks” published in The Times published on 3 January 2009 was created by Satoshi Nakamoto. The note acts as a timestamp of the genesis date and a sarcasm directed towards the instability caused by fractional-reserve banking.
Defying the Traditional Banking System?
In the past, people used commodities such as animals or gold as currency. Due to their scarcity they were used as a store of value. Nowadays, we use banknotes as they are cheap and easy to produce. Banknotes are highly valuable as they are backed by the government. They can be traded for high valued goods like cars, houses etc.
With the rising trend of the internet, we went from banknotes to bank accounts, figures are added or subtracted when we receive salary or make purchases. Only banks have the right to alter our bank accounts. During the 2008 global financial crisis, the Federal Reserve used its power to increase the supply and circulation of money. Satoshi Nakamoto found this unreliable and worked on the creation of a new payment system method where everyone has bookkeeping rights, a controlled currency supply and hope to develop a completely fair and transparent ledger system. This initiated the driving force behind the birth of Bitcoin.
What Makes Bitcoin Different?
1. No ownerships or controls
2. Transparency
3. Lower Transaction Cost
Bitcoin provides transparency, unlike currencies which are controlled by governments, Bitcoin is not owned by anyone. It is decentralised and transactions are verified by users on the Bitcoin network. Importantly, no government has the power to shut it down, unless they are able to shut down the internet.
Bitcoin is pseudonymous, not anonymous. All bitcoin transactions are logged in a public ledger which anyone can access. For example, blockchain.info broadcasts every transaction.This is transparent and law enforcers can trace the transactions right back to the day the bitcoin was mined, which can greatly help them in finding crooks. With that being said, it is not easy to link the digital transactions or Bitcoin address directly to an individual.
Do not underestimate this as many big banks and payment companies such as Visa and MasterCard make loads of money off transactions every second. With Bitcoin, you can overcome credit card purchases of 2-3% transaction costs, telegraphic transfer fees and even remittance taxes. Businesses can share the cost savings with consumers by taking out the middleman. The low transaction costs made micro-payments possible, which further enhances the possibilities for micro-lending and crowd-funding activities. Without Bitcoin, you would probably incur a transaction cost larger than the amount you wanted to pay.
The Last Block Mined
What’s next after the Bitcoin halving? Bitcoin starts a new cycle in price. Predictions have shown that reducing remuneration by half every four years leads to an increased market value of the cryptocurrency.
What do you think about this Bitcoin halving? Has BTC already reached its all time high? Or will it break it’s all time record in the 2020,2021?
Bitcoin’s all time high value: 20,089 USD [2017]
The current price of Bitcoin: 8,600 to 8,700 USD
Effects on The Crypto Market?
Today’s daily sentiment score and tweet volume show that on the day of its third halving, conversations on Bitcoin surged 72% (vs. the 30 day moving average) as Bitcoin surpassed 50K daily tweets for the first time since June 2019.
In the month prior to the halving, the event became the dominant narrative for Bitcoin, as it was the most used word in Twitter conversations around the coin. Despite recent downwards price movement, 51% of tweets mentioning the halving remained positive today as Bitcoin’s Daily Sentiment Score quickly doubled from monthly lows just two days ago.
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