This is Part Two of a multipart series that aims to answer the following question: What is the “fundamental value” of Bitcoin? Part One is about the value of scarcity, Part Two — the market moves in bubbles, Part Three — the rate of adoption, and Part Four — the hash rate and the estimated price of Bitcoin. The market moves in bubbles In recent months or even years, there’s been a lot of talk about the bubbles developing in the bond markets. Newspapers — both financial and non-financial — talked about it, with specialized television stations and prestigious “macroeconomists” …

A crypto app has warned that Bitcoin is facing a liquidity crisis — and the lack of supply on the open market could have ramifications for buyers and sellers alike. According to SwissBorg, the amount of Bitcoin held in exchanges’ wallets has decreased markedly in recent months. This has resulted in a number of major trading platforms suffering outages — with some forced to impose temporary limits on buy orders. Whereas many crypto apps rely solely on one exchange, SwissBorg is connected to four leading platforms: Binance, Kraken, HitBTC and LMAX. The company says this means there is a much …

Without any doubt, the year 2020 was unlike any other year in the 21st century: The ongoing COVID-19 pandemic, global governments unstoppably printing money, “lockdowns” and “social distancing” becoming the new normal, protests against racial discrimination and police brutality, and so on and so forth. It even made some claim it to be “the worst year ever.” But as they say: In every storm, each cloud has a silver lining. The most important thing is to learn from what we’ve been through and to improve our world and our future, as there are some problems that we have to solve …

The COVID-19 pandemic dominated the news in 2020, affecting myriad sectors — health, economics, social justice, politics and trade, as well as the cryptocurrency and blockchain industry. As country after country locked down to halt the virus’s spread, governments seized upon stimulus payments to preserve economic life. While necessary, these measures raised the specter of global inflation. This, in turn, pushed many traditional investors and institutions to take a new look at cryptocurrencies as an alternate store of value, especially Bitcoin (BTC), the top crypto. Following a March 11 dip, BTC went on a tear, reaching record levels by year …

Bitcoin mining started out as a small endeavor taken on by a few individuals repurposing home computers to mint virtual coins that were, at the time, almost worthless. Fast forward to 2020, and Bitcoin (BTC) mining has become a formidable industry of its own, constantly growing and evolving alongside Bitcoin itself. Today, the Bitcoin network’s hash rate is sitting at around 129 EH/s, acting in a similar way to the price of Bitcoin, even following the halving in October this year that saw the mining reward cut in half. James Bennett, CEO of ByteTree crypto data provider, told Cointelegraph that …

Since its launch approximately 12 years ago, Bitcoin (BTC) has seen a number of bull and bear cycles, each greater than the last. What drives these cycles, however? Decred co-founder Jake Yocom-Piatt has claimed that the answer lies within the human brain. “Bitcoin’s bull and bear cycles are functions of generic human psychology, attention spans, and its deterministic and diminishing issuance,” Yocom-Piatt told Cointelegraph. Over the years, various parties have argued different cases for Bitcoin’s cycles, including PlanB’s stock-to-flow model, which projects future Bitcoin prices based on its programmed halving events every four years. Bitcoin is unlike any asset before …

Bitcoin price has more than doubled since its latest block subsidy halving and is now outpacing its last bull run. Data compiled by on-chain monitoring resource ChartsBTC on Nov. 23 shows that versus its two previous halvings, Bitcoin (BTC) in 2020 is right on track to deliver major price gains. Bitcoin price up 120% since May Using figures from Coin Metrics and statistician Clark Moody, ChartsBTC’s Halving Index compares Bitcoin’s progress since May’s halving with the six months after the 2012 and 2016 events. The results show that in terms of price action, Bitcoin is beating its run to 2017’s …

The price of BTC has more than doubled since the Bitcoin’s third block reward halving in May. To be precise, BTC has gained 110%, with prices rallying from $8,566 on May 11 to test $18,000 as of this writing. According to a Nov. 19 report from crypto analytics firm Chainalysis, levels of liquidity and exchange flows have changed dramatically since the halving. The firm identifies illiquid, or investor-held Bitcoin, as “wallets that send less than 25% of Bitcoin they’ve ever received,” while the remaining wallets are classed as liquid Bitcoin, or trader-held Bitcoin. Chainalysis’ data shows that the number of …

As the Bitcoin (BTC) price is reaching its highest levels since January 2018, Bitcoin mining is getting more profitable due to a number of factors. According to data from Blockchain.com, BTC miner revenue has soared to levels not seen since Bitcoin’s third halving in May 2020, which reduced the miner block reward from 12.5 BTC to 6.25 BTC. As such, BTC miners’ revenue hit $20.8 million on Nov. 4. According to Blockchain.com, this is the highest point recorded since September 2019, when the miners’ block reward was twice as much as now. A spike in BTC miner revenue levels is …

With only 21 million Bitcoin (BTC) to be issued, a little under 2.5 million BTC remains for mining. In a tweet, ChartBTC said the Bitcoin network already passed the 18.5 million BTC mark in circulation. This means there is less than 2.5 million BTC left, or about 11.9% of the total Bitcoin to be generated. ChartBTC pointed out half of the remaining 2.5 million BTC will be mined in the next four years. Since the genesis block back in 2009, the Bitcoin network has already undergone three halvings, with the third halving taking place in May this year. As the …

After the May 11 halving, some skeptics speculated that miners would capitulate or that the entire process would enter a death spiral. Fast-forward three months, and the Bitcoin hash rate is at a record high. An all-time high hash rate and a stable Bitcoin (BTC) mining industry are both positive signs for the medium-term to long-term trend of BTC. A rising hash rate is a positive for Bitcoin According to data from Glassnode, the mining difficulty of Bitcoin increased by 3.6% on Aug. 24 and is now at a new high. The data shows that many miners are actively mining …

Although over two months have passed since the halving happened on the Bitcoin network, the crypto mining industry is still heaving from the frantic pace of events that have followed suit. The rollercoaster of hash rates has left Bitcoin (BTC) and Ether (ETH) prices soaring while provoking mixed feelings among crypto miners. The COVID-19 pandemic has left its mark on the industry as well, forcing dozens of pools to either switch off or shift their focus from Bitcoin, with its increasing mining difficulty, to less complicated altcoins that are trailing the Big Daddy of crypto. The impending launch of Ethereum …