BlockchainFlash

Latest news and thoughts on Bitcoin and cryptocurrency

Category Archive : Ethereum

Ethereum will no longer be mineable- Announced changes

Ethereum will no longer be able to mine.

The authors of the second most popular cryptocurrency in the world have announced major changes, which primarily concern mining, ie the creation of new Ethereum.

Well, that doesn’t seem to be the case anymore.

Ether, like Bitcoin, is created by very fast computers solving complex tasks.

When the task is solved, Ethereum is obtained and everything is written in the blockchain.

The problem is that this process is very demanding and consumes a huge amount of energy, and very powerful machines are needed.

That is why mining is banned in many countries.

Now that is changing, so the concept of proof-of-work, which existed until now, will no longer be possible, but only a new proof-of-stake.

This means that Ethereum owners are becoming so-called validators.

The more Ether you have, the greater the chance that you will be a validator who will stack transactions into blocks and get a reward for it.

And since validators use their own cryptocurrency to invest, they are motivated to do so.

If they do not participate in the process, their invested ether begins to decline.

Everything should work and ensure high security of transactions and ownership of cryptocurrency.

These changes should reduce energy consumption by 99 percent and make mining machines virtually unnecessary.

Critics of the process point out that this change is similar to the replacement of the engine on the plane during the flight.

Others complain about the fact that cryptocurrencies are not safe because such changes are possible at all.

In the previous year, cryptocurrencies exploded, and analysts predict an even more interesting market in 2022, here are the currencies that could disappear

Cryptocurrencies were marked last year when they entered the investment mainstream.

However, analysts predict that this year could be even more interesting in the cryptocurrency market.

Almost every cryptocurrency, from Bitcoin to Dogecoin, has reached record values and made astonishing gains.

However, in May, about 50 percent of the total market value was wiped out in just seven days.

And in September, the Chinese government launched a real war against cryptocurrencies, which led to a ban on all transactions.

Other important cryptocurrencies from 2021 occurred when El Salvador made bitcoin a legal tender, numerous meme tokens exploded, and one NFT was sold for an incredible $69 million.

What will cryptocurrency markets bring us this year?

Arcane Research, a blockchain research company, has made dozens of crypto predictions for 2022.

Narrow correlation between Bitcoin and the S&P 500 index

Despite the threat of global economic recovery due to the growing number of coronavirus cases, both Bitcoin and the S&P 500 achieved impressive growth in 2021: Bitcoin jumped 66 percent and the S&P 500 rose about 27 percent.

However, given that Bitcoin has increasingly acted as a risky asset, Arcane Research predicts that it will further intensify significant stock market movements.

“Therefore, if the stock market continues to grow in 2022, Bitcoin will probably surpass it,” they predict.

“But if we see a red year for the stock market, Bitcoin is likely to fail.”

Ethereum will surpass Bitcoin again

Although it has long figured as the second violin, ETHER far surpassed Bitcoin in 2021, soaring 418 percent compared to “only” 66 percent of Bitcoin growth.

“This gap in performance has been the biggest since 2015 when Ethereum was launched,” Arcane said.

Among the reasons why Ethereum will continue to outperform in 2022 is the increase in NFT sales. Most of these tokens still run on the Ethereum blockchain.

Most meme coins will disappear

Investors have seen meme coins have huge oscillations in 2021.

For example, Shiba Inu rose by a staggering 44,540,000 percent last year.

And squid, a cryptocurrency named after the popular Netflix series “Squid Game”, jumped more than 75,000 percent in less than a week and soon disappeared.

“We can’t analyze the 2021 market without mentioning last year’s absurd mime coin,” says Arcane Research, adding that the phenomenon will be remembered as “a historical relic of the absurd times of 2021.”

The USD coin will surpass the Theter

Tether has been at the top for some time as the largest stablecoin in terms of market value. However, that may change this year, especially with the decision of the USD coin to join the wave of lending.

“Innovative lending products that pay high returns for stablecoin deposits have been primarily the drivers of stablecoin growth,” Arcane Research said.

Bitcoin will remain closely linked to the VIX

Stock markets were a stellar success last year, but one pattern crystallized, according to Arcane Research:

“Fear in broad financial markets has directly affected Bitcoin performance.”

The rise in the CBOE volatility index, or VIX(better known as the fear index), followed the Bitcoin sell-off.

Arcane Research warned that market winds this year could have implications for the short-term trajectory of Bitcoin prices.

The third largest cryptocurrency rose 1300% in 2021: Can it threaten Bitcoin?

By comparison, Bitcoin rose 65 percent, while Ether, the second-largest token, rose 408 percent.

This year, the old guard of cryptocurrency has lost its position in relation to tokens with higher yields.

Researchers predict that the trend could continue.

Among the three largest digital tokens, in terms of market value, Binance Coin, or simply BNB, has significantly surpassed its two major rivals – Bitcoin and Ether.

Coin, issued by the crypto exchange Binance Holdings Ltd. – jumped approximately 1,300% in 2021, according to data available to Arcane Research.

By comparison, Bitcoin, the market leader, rose “only” 65 percent, while Ether, the second-largest token, rose 408 percent.

The BNB is widely used on Binance, the world’s largest cryptocurrency exchange.

It is also the home currency of Binance Smart Chain, a blockchain platform that supports smart contracts for use in decentralized finance (DeFi) and other applications.

As the BSC gained supporters over time, it helped increase profits in the BNB token, according to Fortune.

Other alternative coins, or “altcoins”, made big gains in 2021, thanks to an “explosion” of investor interest in digital assets and the expansion of crypto ecosystems.

After the information about inflation in the USA, the fall in prices on the cryptocurrency market

Most cryptocurrencies are declining today.

According to the website Coingecko, the market capitalization decreased by 1.98 percent and amounts to 2.98 trillion dollars.

Bitcoin, which has reached its maximum value several times in the past few days, has fallen below $65,000 today.

It fell by 3.0 percent compared to yesterday, and it is currently traded at a price of 64,918 dollars.

Ethereum has lost 1.2 percent of its value and is currently trading at $4,672.

The fall in prices on the cryptocurrency market followed yesterday when the US Department of Labor announced that inflation, measured by the growth of consumer prices, jumped to 6.2 percent in October compared to the same month in 2020, to the highest level since December 1990.

After a few days of dormancy, the price of Bitcoin jumped again

The cryptocurrency market has seen a strong rise in prices in the last 24 hours.

The market capitalization has climbed 4.3 percent and currently stands at $3.01 trillion.

Bitcoin, the most famous cryptocurrency in the world, has increased its value by 6.6 percent in the last 24 hours and is currently traded at a price of 65,990 dollars.

Ethereum increased its value by 4% in the same period and is currently traded at a price of 4,741 dollars.

The bank predicts a huge jump in the price of Bitcoin

The largest American bank, JPMorgan, predicts that Bitcoin could jump to 146,000 dollars in the long run, if volatility subsides and institutions start to prefer Bitcoin more than gold in their portfolios.

That is approximately 130 percent more than the current price of Bitcoin, Business Insider writes.

JP Morgan also believes that Bitcoin, which is also a rare product, is increasingly gaining gold for investors’ attention as protection against inflation, ie as something that will grow even when inflation destroys the value of other assets.

The re-emergence of inflation concerns among investors during September and October 2021 seems to have renewed interest in using Bitcoin as protection against inflation

said JP Morgan strategist Nikolaos Panigirtzoglou.

Bitcoin has touched new records

Cryptocurrencies marked October, and Bitcoin broke new records.

October was not only marked by new stock market records but was also marked by Bitcoin.

The most popular cryptocurrency entered the month at levels below $44,000, and last night it was worth a good $61,000.

This is an increase of almost 40%, which would have been even higher if the record(on October 20, BTC reached 67 thousand dollars) had not been accompanied by a downward correction.

The crypto market is looking forward to new records, mostly due to the start of the listing of the ETF fund ProShares Bitcoin Strategy(which trades futures on Bitcoin) on the world’s largest stock exchange in New York(NYSE).

The ETF offers investors who do not want to open their cryptocurrency accounts exposure to Bitcoins or terms traded on the Chicago Mercantile Exchange CME.

The second-largest cryptocurrency, Ether, also experienced high(almost 50 percent) growth in October, reaching a record $4,455 on Friday.

On Wednesday, the Ethereum network received an upgrade called Altair, which is another important step for the final launch of the Ethereum 2.0 network, which will(probably next year) be based on the PoS mechanism(Proof-of-Stake) instead of the PoW mechanism (Proof-of-Work), which means that users will confirm transactions according to the number of coins they own.

Currently, transactions are confirmed by miners who are competing(just like in the Bitcoin chain) to be the first to solve complex mathematical cryptographic equations, which, however, provokes considerable criticism due to high energy consumption.

Switching from the PoW model to the PoS model would reduce the environmental footprint by as much as 99 percent!