Week 42 News Recap
The 18-Millionth Bitcoin Mined as Bitcoin is Getting Close to the Limit of 21 Million
The first and the original cryptocurrency, Bitcoin, with a well-known thicker BTC, is created with a hard cap code, which means that there is a limited number of Bitcoin units that can be bought and sold – the currency is not indefinite in the sense of unit issuance. The total number of Bitcoin supply is 21 million, with the latest news that the 18-millionth Bitcoin was made in the third quarter of October 2019. The case of having 18 million BTC units already mined raised a question on how far is 21-millionth Bitcoin unit.
As Alex Alderman, CEO of Lolli Bitcoin reward platform, claims, the fact that the 18-millionth Bitcoin was made may provide people with an opportunity to calculate where we are all at when it comes to Bitcoin mining. Although it may seem as if the 21-millionth Bitcoin is not far, it will take approximately 120 years to mine the remaining 3 million BTC units as the rewards for mining are being halved systematically every four years, or to be exact at every 210,000 blocks, reducing the new supply by half. After the last halving has reduced the mining rewards to zero, miners would have to rely on transaction fees. Despite the beliefs and convictions of skeptics, the last mined Bitcoin shouldn’t jeopardize the system on which BTC is based – the process of validating transactions via mining.
Trojan-Infected Fake Tor Browser is Set to Steal Your Bitcoin
ESET, one of the major suppliers of antivirus software, has warned the public on the case of a fake Tor browser which instead of allowing users to access the Dark web only, is actually set to steal Bitcoin from unsuspecting web surfers and owners of BTC units who happen to download the fake browser. The original Tor browser can be safely downloaded from the official website torproject.org, however, some users might mistake the original and secure version of the official Tor website where they can download a safe version of the browser, with two websites created to fool users into downloading fake Tor.
The websites are named tor-browser.org and torproect.org, distributing fake trojan-carrying Tor browser since 2014, and stealing Bitcoin since 2017. The fake and infected browser is created to steal Bitcoin units by switching addresses used by Dark web shoppers. As by the report made by ESET, Russian-based surfers of Dark web are mostly targeted by the virus-infected fake Tor browser Concluded with September 2019, 40,000$ worth Bitcoin has been stolen this way by far.
The Upcoming 2020 Bitcoin Halving Might be the Most Dramatic?
Every four years, or more specifically, at every 210,000 blocks, Bitcoin is being halved. The system is created to enable the halving of Bitcoin rewards that miners are getting in exchange for validating transactions on Bitcoin chain. Currently, the reward for a solved equation and created new block is set at 12.5 BTC units, making mining more than profitable for validators. However, the upcoming halving that should take place in 2020 should reduce the reward to 6.25 BTC. The previous halving that took place in 2016, cut the weekly rewards by over 302,000$, with 2016 halving taking 8.19 million dollars per week.
According to forecasts around the 2020 halving, the miners could lose around 63 million dollars of profit per week with the reward being cut by 50%. The previous halvings brought upward trends for Bitcoin, while it is considered that the upcoming halving will have the same effect on traders and buyers. As investor Alister Milner claims, at the present price of BTC being 8,200$, there should be 57 million dollars less every week after the 2020 halving, however, that doesn’t necessarily mean that the value of Bitcoin would take off to a decline as halved rewards also mean less BTC to be sold.
Why PayPal Cofounder and Billionaire Investor is Doubling Down on Bitcoin
Bitcoin managed to showcase an impressive price reversal during the first half of 2019, however, Bitcoin soon started to drop back down to previous lows, considering that the top and the first crypto is suffering from the likes of Facebook’s Libra project and pending regulations targeting projects such as Libra and TON. Many investors are backing off Bitcoin, which places an additional pressure to the price. In the meanwhile, billionaire investor and PayPal co-founder, Peter Thiel, has become one of the backers behind the project Layer1.
Layer1 is San Francisco-based Bitcoin mining operation focused on renewable energy. Thiel already joined the first round of funding that brought 2.1 million dollars to Layer1 alongside Digital Currency Group, whereas the investor billionaire joined Bitcoin investors in another round, helping the project collect 50 million dollars out of the targeted 200 million. The goal of the project is to place the US in the competition of Bitcoin mining operations as one of the most valuable competitors. At the present moment, China is the leading country in Bitcoin-related mining operations with making 60% of the market in this sector. Layer1 project aims to change the stats by bringing wind-operated energy to West Texas in order to increase the percentage of mining operations in the US, currently standing at only 5%..
The US Federal Reserve Printed More Money in a Month Compared to Bitcoin’s Total Supply
Since mid-September to mid-October 2019, the United States Federal Reserves have printed more money than Bitcoin has in its total supply. The total supply of Bitcoin is set at 21 million BTC units & market cap of approximately 135 billion, while the US Fed Reserves printed more than 210 billion dollars in the course of a single month. That way, the balance sheet of Federal reserves increased to almost 4 trillion dollars from the previous amount of 3.7 trillion.
The balance sheet had higher balances than the present amount, while the Fed is predicting that the balance sheet will reach 4.7 trillion dollars by the year 2025. According to Mervin King, the former governor of the Bank of England, considers that the world is rushing into a more severe economic crisis than it was the case back in 2008, while proponents of Bitcoin are suggesting that now is the right time to take on Bitcoin investments to avoid inflation.