24 Feb

Bitcoin crash causes $ 5.3 billion to sell off in 24 hours

The correction started by Bitcoin (BTC) has caused a colossal liquidation over the last 24 hours: more than $ 5.3 billion. The volatility in the markets is extreme, as Bitcoin carries altcoins in its fall.

Massive market liquidation

Since yesterday, the price of Bitcoin (BTC) began a significant correction, going from nearly $ 57,500 to $ 48,000 at the time of writing. Bitcoin Future even printed the largest hourly candle in its history, with an amplitude of $ 6,400 .

This situation caused a massive liquidation on the platforms. The Bybt data aggregator estimated that over 600 000 traders have been liquidated over the last 24 hours, combining them all a loss of more than 5.3 billion .

The majority of the liquidated orders are unsurprisingly long orders , that is to say they bet on the rise of cryptocurrencies. The vast majority of these liquidations relate to Bitcoin ($ 2.35 billion). The queen of cryptocurrencies is followed by Ether ($ 1.28 billion) then Litecoin and Ripple’s XRP ($ 200 million each).

Other cryptocurrencies like Binance’s BNB, Chainlink (LINK), Polkadot (DOT) and EOS totaled over $ 500 million in liquidated positions.

Here is the breakdown of liquidations according to the platforms:

A curiosity at FTX

According to the data presented above, Binance has a total of $ 2.3 billion in liquidated orders, which is more than 44% of the total . Next comes Huobi with $ 1.3 billion and then OKEx with $ 720 million. Almost all platforms have the same ratio of liquidated long / short orders. That is to say that many more orders long as orders shorts are involved in liquidation.

Oddly enough, FTX traders seem much less optimistic about the rise in Bitcoin. The cumulative values ​​of long and short orders liquidated on the platform are almost the same, unlike other platforms where the difference is much more marked.

Note that the record for the largest liquidation goes to a Huobi user, for an order worth $ 20.66 million .

With volatility still as high today, liquidations should continue to follow until the situation stabilizes. The market is in full euphoria and the price of Bitcoin is still seeking its direction. Care should be taken if you are using futures contracts, a sudden liquidation is quick to happen .

13 Feb

Wall Street Banks er gradvist åbne over for Bitcoin

I modsætning til tidligere skepsis til bitcoin, der er udtrykt af Wall Street-banker, indikerer den seneste udvikling, at traditionelle finansielle institutioner er mere åbne over for det største kryptoaktiv, hvor nogle overvejer at tilbyde bitcoin-tjenester.

JPMorgan kunne tilbyde Bitcoin-handel efter klientefterspørgsel

I et interview med CNBC sagde Daniel Pinto, co-præsident og Chief Operating Officer for JP Morgan, at bankgiganten ville tilbyde bitcoin-handel. Beslutningen vil imidlertid blive påvirket af stor efterspørgsel fra bankens kunder efter kryptoaktivet.

På et rådhusmøde med tusindvis af salgspersonale og forhandlere over hele verden spurgte JPMorgan’s medarbejdere, hvornår banken skulle involvere sig i bitcoin. Som svar på spørgsmålet var Bitcoin Future Pinto angiveligt fordomsfri over for flagshops krypto.

I tale med CNBC sagde JPMorgan-direktøren, at det kun var et spørgsmål om tid, før der var et krav om BTC fra sine kunder. Ifølge Pinto:

”Hvis der over tid udvikler sig en aktivklasse, der skal bruges af forskellige aktivforvaltere og investorer, bliver vi nødt til at være involveret. Efterspørgslen er ikke der endnu, men jeg er sikker på, at det vil være på et eller andet tidspunkt. ”

Desuden nævnte bankens medformand BlackRocks bitcoin-flytning tilbage i januar, hvilket var bevis for en bredere adoption. Som rapporteret af BTCManager foreslog et par SEC-arkiver fra verdens største formueforvalter, at BlackRock ville investere i Bitcoin-futures gennem to af sine fonde.

JPMorgan-direktøren tilføjede også, at hvis bitcoin blev reguleret, ville handler involvere overvågede klienter sammen med regulerede børser, herunder Coinbase. Pintos kommentarer står i modsætning til tidligere følelser, der deles af bankens administrerende direktør, Jamie Dimon, der kaldte bitcoin for bedrageri.

Bortset fra JPMorgan begynder flere Wall Street Banks at undersøge bitcoin. En anden investeringsbankvirksomhed afholdt et privat møde med administrerende direktør for kryptoselskabet Galaxy Digital, Michael Novogratz, for sine kunder og medarbejdere. For nylig annoncerede BNY Mellon, Amerikas ældste bank, planer om at begynde at tilbyde krypto-opbevaringstjenester til sine kunder.

Flere institutionelle investorer køber Bitcoin

I mellemtiden ser bitcoin fortsat øget adoption fra institutionelle investorer, da kryptoaktivet nummer et fortsætter med at vinde mere popularitet. Nogle virksomheder overvejer allerede at gøre BTC til en betalingsmetode.

Elbilproducenten Tesla investerede 1,5 milliarder dollars i bitcoin med planer om at begynde at acceptere bitcoin som en betalingsmetode for sine produkter. Også kreditkortsgiganten Mastercard, der kun samarbejdede med kryptokurrencyfirmaer for at udstede kryptokort, afslørede, at den planlagde at støtte nogle kryptoaktiver på sit netværk. Med denne plan ville Mastercards købmænd kunne modtage bitcoin direkte.

7 Feb

Why are there 21 million bitcoins?

Twenty-one million: this is the theoretical maximum number of bitcoins (BTC) that must be issued. Defined within the protocol, this number has caused much ink to flow and has become iconic in Bitcoin culture. But where exactly does it come from?

The limit of 21 million bitcoins

Unlike the euro and other traditional currencies, bitcoin (BTC) has a predetermined monetary policy. New bitcoins are distributed through mining , the process of reaching consensus on the network and securing the chain.

The amount of bitcoins is not meant to be unlimited and money creation is supposed to stop at a certain point. This plan was outlined by Satoshi Nakamoto early on in Section 6 of the Bitcoin Whitepaper :

Once a predetermined number of coins have been put into circulation, the incentive can be fully funded by transaction fees and no longer require inflation.

This policy was set in the code for version 0.1 of the software released on January 8, 2009. The miners‘ reward, which was initially 50 bitcoins per block, should be halved for every 210,000 blocks. Since the average block time is 10 minutes, this equates to a halving, or halving , every 4 years or so.

Bitcoin monetary policy code version 0.1 January 2009

On the same day, in his email announcing the software’s release, Satoshi first mentioned the 21 million bitcoin limit :

“The total quantity in circulation will be 21,000,000 coins. It will be distributed to the network nodes when they create blocks, the amount being halved every 4 years. “

In reality, this limit is not imposed in the code directly, but is deduced from the conditions imposed by monetary policy. This is very easy to calculate:

Nmax = 210 000 × 50 + 210 000 × 25 + 210 000 × 12,5 + …
= 210,000 × (50 + 25 + 12.5 + …)
= 21,000,000
Thus, the quantity in circulation naturally tends towards 21 million over time. Likewise, the rate of money creation is tending towards zero, making bitcoin increasingly hard to produce .

Where does this number come from?

The 21 million limit is part of Bitcoin’s identity and has been instrumental in its success. It is emblematic today, to such an extent that it is included in many names of projects such as the newsletter of Gregory Raymond or the English-speaking magazine Citadel21 .

But one wonders why this number of the 21 million was chosen. Why millions of bitcoins and not billions or trillions? And why the number 21 rather than a power than a round number like 10 or 100?

When he introduced Bitcoin to the world in January 2009, Satoshi Nakamoto did not explain his choice. Nonetheless, he provided an interesting response within his private correspondence with Mike Hearn. In an email sent on April 12, 2009, in response to a question from the Google engineer, Satoshi said:

“My choice for the number of pieces and the distribution schedule was an educated guess. It was a tough choice, because once the network was up, those settings were locked down and we were stuck with them. I wanted to choose something that would make the prices similar to existing currencies, but without knowing the future it was very difficult. I ended up choosing a middle ground. If Bitcoin remains a small niche, it will be worth less per unit than existing currencies. If we imagine that it is used for part of the world trade, then there will only be 21 million pieces for the whole world, so they will be worth much more per unit. The values ​​are 64-bit integers with 8 decimal places, so a coin is internally represented by 100,000,000. There is a lot of granularity if the usual prices ever get small. For example, if 0.001 [Bitcoin] is worth 1 Euro, it may be easier to change where the decimal point is displayed, so if you had 1 Bitcoin, it is now displayed as 1000 and 0.001 is displayed as 1. „