Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
The comparison highlights the stability of the conditions for the issuance of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. versus the U.S. dollar, showing that the latter is mainly subject to the needs and policies of the responsible government, the main cause of U.S. currency currency is a medium of exchange that defines value. inflation.
Following the announcement by the U.S. Department of Labor on the increase in inflationary levels in February, the comparisons were not long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. in coming, highlighting in particular the fact that in the face of the fall of the U.S. currency Bitcoin has managed to hold steady, and although there is great volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. in its prices, its issuance remains based on the principles originally established.
Inflation a general increase in prices and fall in the purchasing value of money. of Bitcoin is five times lower than that of the US dollar
The comparison in question is presented by the media Finbold, which points out that 90% of the total number of Bitcoin originally scheduled to be issued, bringing its inflation rate down to 1.7%, five times lower than the current US dollar rate.
The remarks made by Finbold are based on various market data, including the graph presented by the co-founder of Glassnode, Rafael Schultze-Kraft, who on March 10 indicated through his official account an account is essentially a whose purpose is to track the financial activities of a specific asset/ of Twitter that the inflation rate for digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency was following a “one-way” pattern. downward trajectory, pre-programmed and totally predictable”. .
– Rafael Schultze-Kraft (@n3ocortex) March 10, 2022
Frente al pasado mes de enero, la inflación de Bitcoin fell by 0.1% in February this year to 1.7% for the month. On the other hand, this same indicated in the U.S. dollar is located over 7.9% during the last month, being the highest rate in the last 40 years, that is, since 1981 before the oil peaks arrived at that time, as stated by analyst Holger Zschaepitz.
US#Inflation rate jumps to 7.9% in Feb, hits 40y high even before #oil spike. Excluding volatile food and energy components, so-called core prices increased 6.4% YoY. 7.9% jump was the biggest since 1981. Services costs increased 4.8% YoY, the biggest advance since 1991. pic.twitter.com/gIpyG7KaKT
– Holger Zschaepitz (@Schuldensuehner) March 10, 2022
Bitcoin does not respond to particular desires
As is well known, the design of Bitcoin is governed by strict scheduling and mathematical principles that govern both the maximum ceiling of assets to be issued, the speed and pace at which they will be created, as well as the scheduled distribution among those who support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. and/or support the good performance of the network.
These principles include the following:
- By the end of its broadcasting history, the network a network refers to all nodes in the operation of a blockchain at any given moment in time. will have created a total of 21 million BTC, por lo que no habrá ni uno más ni uno menos en circulación y this limit will not change.
- The creation of new BTC is destined for the mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. community, among whom will be raffled as a reward a certain amount of BTC for having its computing power (HASH) to solve highly complex mathematical operations to compile blocks of transactions. The more participants mine, the more complex the calculations will be to find the solution to the corresponding block.
- Each block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. of the network will be broadcast in a 10-minute time span, currently resulting in about 6.25 BTC for the miner the term “miner” can refer to both the person doing the mining and the device that is used to mine crypto. who manages to process it, this in addition to the rewards linked to the commissions paid for all transactions compiled there.
- The issuance of new BTC is also a scheduled process, and is cut by half on average every four years through a process called “Halving”.
- That said, it only remains to point out that the latest new BTC will occur in the year 2140, and once the process is closed, miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. will compete for the rewards associated with the commissions linked to the transactions.
This makes Bitcoin a currency with deflationary properties, i.e., whose value is programmed to increase organically over time according to free market principles, since this system shortens supply as demand grows to the extent that there is greater adoption.
On the contrary, we have the U.S. dollar, the main reserve currency among a large number of countries, which during the pandemic by COVID-19 was the subject of certain measures by the US Federal Reserve (FED), which was overprinted to finance the economic debacle experienced during the early years of this situation. It is estimated that one fifth of all dollars currently in circulation were printed in the last two years, and this was due to the need to finance social support programs and economic aid packages.
Bitcoin and the crypto market an area or arena, online or offline, in which commercial dealings are conducted.
Si bien la emisión es una cosa, el precio de Bitcoin in the market is mainly governed by supply and demand principles, although as an asset that can be traded 24 hours a day through exchanges and trading services, its price can fluctuate much more easily than other known securities.
At the time of editing Bitcoin is trading at around USD $39.241 per unit, capitalizing on a 6.68% drop in the last 24 hours. According to our section CryptoMarkets , its all-time high between 2021 and 2022 was about USD $68,789, while its lowest value reached USD $28,893.
- U.S. inflation hits record high of 7.9% y/y, but Bitcoin is undeterred
- After the furor over the executive order in the U.S., Bitcoin and major cryptocurrencies go down on March 10
- For Anthony Scaramucci of Skybridge Capital, “Bitcoin could reach USD $500,000 in the next four to five years”.
Source: Finbold , Twitter
Version by Angel Di Matteo / DiarioBitcoin
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