Bitcoin's Trajectory - Crypto Academy S4W5 - Homework Post for @imagen
Since the invention of cryptocurrency in our time, it has served it possible as a means of exchange and investment and can be said to be a digital coin or token which is gradually taking the face of physical money. These all begun in the year 2009 when Bitcoin was launched as first-of-kind cryptocurrency. Since then, Bitcoin has undergo a process which is known as halving in different space of time.
According to my understanding, Halving is a process or period of time when a crypto coin creates a new of it kind and been cut into half section and rewards it miners that mines that particular coin.
HOW MANY TIMES HAS BITCOIN BEEN "HALVED"?
In addition to the previous definition of halving, Bitcoin halving is known to occur after a number of 210,000 blocks are been mined of which takes place in a duration of four years. Through this process, the supply of bitcoin can be controlled to the best limit. Based on statistics, Bitcoin halving have taken place third good times.
The first halving took place in the year 2012 November 28 to be specific, it was recorded that a total number of 5,250,000 where mined during that period which give the percentage of about 75% and it's reward dropped from it launch reward of 50 to 25. The second halving took place in the year 2016 July 9 which had a total block number of 420,000 with a mined percentage of 87.5% and a reduced reward of 12.5 btc.
The third bitcoin halving occur last year 11 of may 2020 which had a total of 6.25 btc on each block which on that day had a price tag of $8821.42 which increased after 150 days to $10,943.00. The charts below explains more on this:
WHEN IS THE NEXT EXPECTED? WHAT IS THE CURRENT AMOUNT THAT BITCOIN MINERS RECEIVE?
The next Bitcoin halving is expected to take between the months of February and June in the year 2024. Since each halving do occur in every space height of 210,000 blocks, it is expected that by that year, a block height of about 840,000 will be reached and a percentage of 96.875% will be mined during that period which will result to a block rewards of about 3.125 per block.
Currently, Bitcoin miners are reward with 6.25 bitcoins per block, such rewards are first offered to those miners who create a solution to the puzzle of which has 10 minutes process on each mining within it network.
MENTION AT LEAST 2 CRYPTOCURRENCIES THAT ARE OR HAVE HALVED
There are two well-known coins that have been halved, which includes:
- LITECOIN
This cryptocurrency was launched in the year 2011 in the month of October by a goggle employee known as Charles Lee. Since it creation, Litecoin have been halved twice, one was during the year of 2015 August 25 with a block reward of 25 ltc per block, The second halving took place in month of August 5, 2019 with a block reward of 12.5 ltc per blocks thereafter, they have not been another halving event for the coin but expects to occur in the year 2023.
- DOGECOIN
Been under a bitcoin fork, this coin has not really been given much attention, it was recorded that the first halving process took place in the year 2015 which reward each block with 10k doge and was said to take place every 69 days gap but since it first halve, there have not been another to fellow resulting to a sudden disappearance of such event.
Consensus can be referred as to as an agreement plan that is been reached by a greater number of users or individuals.
CONSENSUS MECHANISMS
These is an apparatus used to deploy different works or serves as a functionality on a blockchain network such as block and transaction verification, validation of blocks (old and new) between it validators and nodes and miners reward. Through this medium, trust and honesty is attained and maintained within it network in a decentralized format because it necessary agreement that have been made are followed.
HOW DO PROOF-OF-WORK AND PROOF-OF-STAKING DIFFER?
These consensus mechanism deals on an offer that allows it nodes to perform some works in order to gain more power of which consume huge sum of energy and well-spent process time, it works includes providing fast solutions to a mathematical puzzle provided, validation and verification of transactions and new block by it miners to the blockchain network of which requires a huge investment on equipment's in order to own a secure network within the blockchain.
Bitcoin, Ethereum, Monero, Litecoin is known to be among the cryptocurrencies that implements the usage of the above mechanism. it could be said that proof-of-work is highly expensive when it comes to the requirements before a work can be performed in the network system.
These consensus mechanism deals on assigning authority or duty to a particular set of nodes (users) who has in possession a huge sum of crypto coins or virtually token who then stakes or delegates their assets as validators and are rewarded based on their input and gain access to a higher reputation within a blockchain network. Within this mechanism, few equipment's are required fro operation, less energy consumption.
Cosmos (ATOM), Polkadot (DOT), Tron (TRX), Tezos (WTZ) are among the cryptocurrencies of which has exercised the above mechanism system and has proven to be in a flat-fast design with it high transaction performance per minutes.
According to the instruction, I will be using blockchair.com to explore the blockchain and gain access to necessary information from it.
From the screenshot above, we can notify the following details:
- LAST BLOCK
703,694 - HASH
00000000000000000000f4d02c410a8cd8dc2eb5c7cd3594fd0a3b6561c328db
The image above gives a clear information as to date of which the mining took place, the identity of the miner, what was generated, the input and output count and other technical necessary analysis made available.
WHAT IS MEANT BY ALTCOIN SEASON?
Altcoin season is a duration of time when crypto coins or tokens that are not noteworthy tenses to yield more profit within the market chart, such coins are not that popular (unlike bitcoin). This season is usually known to occur during a ratio drop of bitcoin in it current market cap and a trend which results to creating a new crypto coins within the crypto market space.
ARE WE CURRENTLY IN ALTCOIN SEASON? WHEN WAS THE LAST ALTCOIN SEASON?
Based on statistics, we are not in the altcoin season but in the Bitcoin season. But as you can see from the chart below, you will understand that altcoin year index is in point 63 which indicates that hopefully there will be an altcoin season before the climax of the year. Under the altcoin month index, it clearly shows that we are in the bitcoin season with a point of 16.
The last altcoin season took place between the month of march to June of the year 2021. The chart gives the detail that it was in 23rd of march down till 20th of June of this year. During that period, there was a significant increase of 98% in the altcoin season.
From the statistics in blockchaincenter.net we can understand that BCHA (Bitcoin Cash ABC) took it spot among the top-coins during the last altcoin season with a percentage of 616.3% while AXS (Axie Infinity) follow through with a point percentage of 604.7% as the chart below explains:
MENTION AND SHOW 2 CHARTS OF ALTCOINS FOLLOWED BY THEIR GROWTH IN THE MOST RECENT SEASON. GIVE REASONS FOR YOUR ANSWER
According to the above chart provided, I will discuss on the two top-coins in the altcoin season which includes:
- BCHA (Bitcoin Cash ABC)
The above BCHA (Bitcoin Cash ABC) has a current price of $191.28 with a market cap of $3,552,682,192 and conducted a trading volume of $33,672 in past 24 hours.
From my analysis, before the start of the altcoin season, BCHA (Bitcoin Cash ABC had a price tag of $22.43 but currently has a price of $191.28 with a time high that took place in September with a range of $381.95.
- AXS (Axie Infinity)
The above AXS (Axie Infinity) coin has a current price of $128.38 with a market cap of $7,765,967,575 and had conducted a trading volume of about $1,296,165,442 during the past 24 hours.
From my analysis, before the start of the altcoin season, AXS (Axie Infinity) had an all time low of about $14.19 but after the season it was recorded that a huge rate of $155.08 occur during the month of October.
According to the instructions, I will be using Binance exchange binance.com to process the transactions. For the assignment, I will be purchasing EOS.
HERE ARE THE STEPS THAT WERE TAKEN FOR THE PURCHASE:
1: From the image below, You can see that my Binance exchange is verified and from the right side, you can see that i already have about 21.65 USDT of which I will be using to purchase the EOS coin.
2: To proceed, I place an order to buy EOSwith a sum of $15 which gives a quantity of 3.096 EOS after the purchase as you ca see from the left side of the image below.
3: The image below shows what was in my EOS wallet before the purchase and what is now found in my wallet after the purchase which is total of 3.096 ($14.69)
4: I have successfully purchased the EOS token with $14.69 of which gives me a total of 4.751 EOS/USDT in my wallet.
WHY EOS TOKEN
EOS is under EOSIO network and is known to be a native token with a decentralized network system working under Ethereum. It structure of blockchain is programmed in a format to trade and not mine and also to helps process transaction at the best speed limit with a support from it smart contract.
With this coin, users are expected to possess the coins before you can process within it blockchain network unlike other coins and tokens that required a payment before processing. EOS coin works on hosting severs (like dApps) and cloud-storage in order to make it easier for individuals to work in the blockchain network.
GOAL AND PURPOSE BEHIND THE PROJECT
A few of the EOS purpose has been mentioned above. Additionally, the EOS coin is based on one's ownership of the coin before such individuals can gain access in the network. With the current price o the coin is is expected that in 2025 it will hit a price tag of $45.
The coin aims to serve as an exchange or as a means of payment through it verified wallets of which has a public network system. The network system of the coin allows it coin holders to see transactions and account balance of the wallets in the blockchain, it also have the possibility of hiding one's total balance in a wallet.
FOUNDER
The EOS token was created by Dan Larrimer, he is a well-educated tech, blockchain and cryptocurrency icon an legend of whom is known to be a programmer who also invested steem and bitshares and has been in existence since 2018.
EOS CURRENCY ATH AND CURRENT PRICE
The chart above shows the current price rate of EOS which is at $4.85 with a market cap of $4,659,401,233 and is ranked at stand #41 in the coinmarketcap.com chart. It was recorded that EOS has in the past 24 hours traded in a volume of $1,295,990,745.
The chart also shows that the currency had an all-time high in the year 2018 April 28 with a high rate of $22.89, with a total supply of 1,036,247,314 EOS.
Cryptocurrency have been good invention in our generation because it has really solved some monetary and economic issues. Infact, the halving process that occur at it given time has been the best programmed format in order to keep a track on the supply's. Based on the altcoin season, it is really my first time to know about such period and I can't wait for it to take place and see the effect it will have on investors and traders. Thank you so much professor @imagen for the wll-detailed lecture, I hope to learn more from you next time.
cc: @imagen
Gracias por participar en la Cuarta Temporada de la Steemit Crypto Academy.
Continua esforzandote, espero seguir corrigiendo tus asignaciones.