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Will Bitcoin Reach $500,000 in 5 Years? Mike Novogratz Has the Answer

by Coin Network Admin | Dec 20, 2022 | Bitcoin, Market News, News

Bitcoin, the first decentralized cryptocurrency in the world, to record, sign, and send transactions across the Bitcoin blockchain without the intervention of a centralized authority and under Satoshi Nakamoto, an unidentified computer programmer or group of programmers introduced the Bitcoin network. Mike Novogratz, the founder, and CEO of Galaxy Digital predicted that a single Bitcoin (BTC) will be worth $500,000 in five years during a broadcast interview with Bloomberg Technology in March.

Knowledge of Bitcoin

The name Bitcoin.org domain was registered in August 2008 and this is WhoisGuard Protected today at least, which means the person who registered its identity is private. However, on the Cryptography Mailing List at metzdowd.com in October 2008, someone or some organization going by the fictitious name Satoshi Nakamoto posted that he has been working on a new electronic payment system that’s peer-to-peer, with no trusted third party. The Bitcoin – A Peer-to-Peer Electronic Cash System, a now-famous white paper that was posted on Bitcoin.org, would go on to become the Magna Carta for how Bitcoin functions today.

The first Bitcoin block, known as Block 0, was mined on January 3, 2009. The line “The Times 03/Jan/2009 Chancellor on edge of the second bailout for banks” can be found in this block, which is also referred to as the “genesis block.” This text may serve as both verifications that the block was mined on or after that date as well as political commentary.

For every 210,000 blocks, the incentives for Bitcoin are halved. As an illustration, in 2009, the block reward was 50 new bitcoins. The reward for finding a block was reduced to 6.25 bitcoins on May 11, 2020, as a result of the third halving.

The smallest unit of a bitcoin is known as a satoshi, and one bitcoin can be divided up to eight decimal places (100 millionths of one bitcoin). if modifications are required and approved by the participating miners, Bitcoin could be made divisible to even more decimal places.

Understanding Bitcoin as a type of digital currency isn’t that difficult but for instance, if you have a bitcoin, you can send smaller amounts of that bitcoin to pay for goods or services using your cryptocurrency wallet. Therefore, when you attempt to grasp how it operates, it gets really difficult.

Blockchain Technology for Bitcoin

A blockchain and a network are needed to power it to contain cryptocurrency. Blockchain is a common database that houses data that is used for encryption techniques to protect data, so when a transaction occurs, data from the previous block is copied to a new block with the new data, encrypted, and the transaction is validated by validators, or miners, in the network and a new block is constructed and handed as a reward to the miner(s) that verified the data in the block once a transaction has been confirmed, and are then free to use, hold, or sell the new Bitcoin. However, the information held in the blocks on the blockchain is encrypted by bitcoin using the SHA-256 hashing algorithm and it is simply explained, a 256-bit hexadecimal integer can be used to encrypt transaction data that is stored in a block. All transactional information and details about blocks before that block are contained in that number.

Mike Novogratz, the founder, and CEO of Galaxy Digital predicted that a single Bitcoin (BTC) will be worth $500,000 in five years during a broadcast interview with Bloomberg Technology in March.

Cryptocurrencies are something Mike Novogratz firmly believes in. In reality, it is known that how Galaxy Digital and Goldman Sachs had joined to give clients of both firms access to an Ethereum investment fund for a minimum investment of $250,000. A similar Bitcoin investment fund was also being offered by Goldman and Galaxy.

Although no one is surprised by his support for Bitcoin, his price projection and time horizon are audacious considering the current market value of the cryptocurrency.

The cost of Bitcoin and its market value would have to rise by 12 times

According to CoinMarketCap, Bitcoin has the highest market cap, which is over $768 billion at the time of writing. Although Bitcoin’s price rose by a healthy 60% last year, it has now fallen by just over 40% from its all-time high of about $69,000 on November 8, 2021.

The price of Bitcoin would need to rise by more than 12 times to reach $500,000, which would expand its market capitalization to an astounding $9.2 trillion in just five years. I haven’t heard any analysts estimate that Google, Apple, or Amazon’s respective company valuations will climb tenfold by 2027, so that’s comparable.

The collapse of the FTX exchange in early November, however, made the cryptocurrency crisis far worse, and Bitcoin’s price fell to its lowest point in two years. After a little comeback, the leading cryptocurrency is currently trading just above the $17,000 mark. According to U.Today, in a recent interview with CNBC, Mike Novogratz called former FTX CEO Sam Bankman-Fried “delusional” and said that the disgraced crypto guru needed to serve time in prison.

In an earlier prediction, Mike Novogratz stated that Bitcoin would hit $500,000 in 2028 after five years. Investors were persuaded by his incredibly bullish prediction that BTC will soar to new yearly highs. In May 2022, when TerraUST and LUNA lost all of their value and went to zero, Mike Novogratz reiterated his earlier assertion that he still thought Bitcoin would reach $500,000 in five years.

Bitcoin: Will It Achieve $500,000 by 2028?

The persistent and severe bearish market conditions have appeared to have dampened Mike Novogratz’s enthusiasm for bitcoin.

Novogratz recently told Bloomberg that he no longer thinks Bitcoin will reach $500,000 in five years. The impending recession, he continued, will impede Bitcoin’s rise and make rallies more difficult.

For those who are unaware, Mike Novogratz was one of the first to foresee that 2022 will be a worse year for cryptocurrency investors. His prediction came true, as the markets were in the red for the whole calendar year.

His prediction that Bitcoin would not reach $500,000 by 2028 may come to pass if the world economy continues to be unsteady. The markets are being pushed back by layoffs, inflation, and recession concerns, which is causing Bitcoin’s price to decline.

Bitcoin Sinks Below $17,000

by Coin Network Admin | Nov 20, 2022 | Bitcoin, Market News, News

The recent FTX collapse has affected the entire crypto industry and most of the big coins are going down when it comes to their price. Just recently, we have seen the sudden crash of Bitcoin sinks below $17000 which looks quite alarming to all Bitcoin holders. While on the other hand, for the people who were thinking to buy BTC, it may be a good time for them since they are now less expensive than their value before the collapse.

Cryptocurrency exchange FTX has been struggling to allow withdrawals as the market embarks on a turbulent week. CoinMarketCap data shows that the value of the cryptocurrency market fell 3.8% to $851.6 billion on Monday. Not just the Bitcoin sinks, there are many major coins that are also affected including ETH. Both the crypto Market pioneers Bitcoin and Ethereum were down 6%, as indicated by the data gathered from comics. That slid down the bitcoin’s cost to $16,681 from $21,304, a 22% downfall, while ether went straight 24% down to $1,240 from $1,627.

The FTX token was exchanging at $2.65, addressing a loss of almost 90% over the course of the week. Binance coin went to $281.72, carrying its loss of one week to 21%. Fanning the fire, Changpeng Zhao, the President of the opponent Binance exchange, consequently stated on Twitter that he wanted to strip FTX tokens then worth about $580 million.

Changpeng was an early financial backer in FTX and got tokens last year in return for his value in the other exchange. Not just the crypto industry, the FTX collapse has also badly affected US stocks. A US bank i.e. “Silvergate Capital” that lends to the crypto industry also fell 5.1% due to this misfortune.

Despite all these things going on in the crypto industry, investors are waiting for the bull market to make everything go great. We don’t know how much longer it will take to get into the bull market but we are sure that the time is not too far. Till then, you can take advantage of this mishap and get the coins while they’re still recovering, because they’ll likely be a lot more valuable in the future. Invest now and enjoy your profits in the future. There are risks in every investment, but with a long investment horizon, you can protect yourself against any short-term market movements.

Let’s take a look at the reasons why a 0.75% hike can prove to be bullish for both Bitcoin and Altcoin

by Coin Network Admin | Nov 4, 2022 | Bitcoin, News

There have been various news doing the rounds regarding the new changes that are about to occur. These new changes are said to bring new rate hikes that will ultimately affect two of the major crypto assets. To shed light on this aspect, this article has delineated the reasons and consequences as well as the nature of the new upcoming reformations. The Federal Reserve has decidedly upon increasing the rate of interest somewhat around the current week and the whole industry is waiting eagerly to witness what consequences it gives rise to.

Expectations of traders from the increase in interest rate

There are a lot of expectations that are hooked to this surge and traders are awaiting to watch how the hike of a meager 0.75% can lead to a rally in the crypto market. As it is now known to those who are associated with the crypto industry, this particular industry is quite volatile and thus prone to fluctuations. It has witnessed various ups and downs of various crypto assets since the time it emerged on the scene but has been able to spread quite a strong base in the financial system.

A brief analysis of different crypto assets

In recent times, several crypto assets have taken a major hit and have even witnessed their worst downward trend. For example, the S&P and the Nasdaq Composite had to go through one of their worst periods and were even not able to perform properly.

There have been various reasons and concerns that have led to its downfall to a large extent such as the concern that haunts the investors regarding the Federal Reserve’s persistent endeavors to bring about sudden changes in monetary policy. These policies are being put in place to bring about a diversion from inflation however, it could give rise to a recession in the United States.

How did Bitcoin get affected by this?

As Bitcoin has always been in close contact with the S&P 500, it is thus, obvious that it would also witness a fall in its value in recent times. It has been estimated that the fall is going to be almost 9% in recent weeks. It has also been predicted that if this codependency continues, the current situation of the market and the S&P could lead to a further decline of the coin.

There have been various expectations from the Fed and how it plans to bring about a hike in the rates. While some expect it to be on a 75-point basis others have predicted it to be on 100 point basis. However, all the lingering tension in the crypto market has added to its volatile nature and has made all the traders rather eager and impatient. The anticipation and the wait have already started causing more troubles while the wait is still on and the consequences are still uncertain.

Conclusion

However, there is a plus side to it all that can benefit buyers as well as the crypto industry. If the rates decided by the Fed fall in sync with what the market expects from them, it can potentially get more buyers interested in the crypto industry. It can thus act as a factor that could help in adding to the popularity of the crypto industry. But this might not be true for all crypto assets but for some of the most popular ones that have the potential to yield better benefits. One can easily get details on the various cryptocurrencies that are going to go on a positive trend in the coming times.

Binance Account Bound (BAB) token, the First-Ever Soulbound Token on BNB Chain

by Coin Network Admin | Sep 20, 2022 | Alt Coin, BNB, Market, Market News, News

Binance is the most popular and the biggest crypto trading platform when it comes to the trading volume. The platform allows users to buy or sell various digital currencies. Along with this, users also have the ability to review and compare other crypto options to do the trading. With $40 billion daily trades, Binance has become the world’s biggest trading platforms.

On 8^th Sept. 2022, this leading digital currency trading platform launched the Binance Account Bound (BAB) token on BNB Chain which is suppose to work as a “soulbound token”. BAB is basically launched to utilize as an identity proof for KYC verified Binance users. These soulbound tokens can’t be transferred as each user on BNB Chain has its own unique token. In this way, a verified Binance client ID must be utilized to mint one BAB token on a BNB Chain. They are, notwithstanding, revocable, after which tokens will be locked for 72 hours.

However, remember that getting a BAB Token is completely optional for Binance users and it is not a compulsory requirement to use any products or services offered by Binance.

Everything you need to know about BAB:

Binance Account Bound (BAB) tokens or the soulbound tokens are mainly launched for Binance users who get verified after completing the whole KYC verification process. In simple words, these tokens are identity credentials for them. They are will issued on the BNB Chain by Binance and it is indicated that several other projects on BNB Chain will also be introducing the BAB tokens to their users as identity credentials. When a Binance verified user creates a BAB token, that particular user will be given the access to participate in building the supporting projects on the chain and get rewards. However, the complete details related to it are not revealed yet.

Till now, there are 15 projects that have partnered up with Binance to offer their users benefits related to the BAB tokens. The benefits include the things like exclusive airdrops, community and membership benefits, benefits on the social gaming metaverse, access to play-to-earn protocol, privileged reward programs along with many other VIP perks. This partnership news was also confirmed by BNB Chain.

BAB Features:

The token is non-transferable, which means that it can’t be transferred by the user to another user. It’s unique for everyone.
It is revocable and users who have the token can simply revoke their BAB tokens.
One user ID that is verified by Binance is allowed to mint one BAB token just on the selected chain.

The launch of BAB tokens was encouraged by the whole community and the BNB chain users supported the whole idea behind it. For the first time in Web3, by minting BAB token to their wallet address on BNB Chain, Binance users will get exclusive access to programs which will be linked to real-world use cases.

So, that’s all for now, do let us know what do you all think about this token launch.

The fourth BTC halving, which was initially scheduled to happen in 2024 will now happen sooner

by Coin Network Admin | Sep 20, 2022 | Market, Market News, News

The fourth BTC halving was scheduled to take place in 2024 but according to many resources, the chances are that it can take place sooner i.e. maybe at the end of 2023. Before getting deep into it let’s just dive into what halving actually is.

All you need to know about fourth BTC Halving:

Bitcoin halving is an occasion where the compensation for mining new BTC blocks is halved. Because of the halving, miners get half less BTC for authenticating the transactions. This event of halving happens after every four years or technically speaking, after every 210,000 blocks. In simple words, through the halving process, Bitcoin makes a fake inflation that decreases by half by every four years till it is issued and being used.

How does halving works:

Bitcoin halving works on account of its network’s fundamental blockchain technology software which directs the rate at which new Bitcoins are made. The software requires PCs in the blockchain network to contend to verify exchanges known as Bitcoin mining. Bitcoin miners are rewarded by the mining with a few new Bitcoins when they can demonstrate that the exchanges that have been chosen by them are valid. These transactions are confirmed in bunches known as blocks, and the blockchain network is coded to halve the reward received by miners after every 210,000 blocks.

Why is it important?

Well, a lot of you might be thinking that why the halving takes places after every 4 years or so and what the purpose is. The reason behind it is that through Bitcoin halving the quantity of new Bitcoins made each block reduces which decreases the quantity of new Bitcoins accessible and raises the price of getting one.

And, as you all may already know that a constant demand and decreased supply can simply result in a higher cost. Because of the fact that it restricts the supply of new Bitcoins while keeping a steady demand, halving results in Bitcoin’s most prominent surges.

The Next BTC Halving…

The fourth BTC halving, which was at first planned to occur in 2024 is now suppose to take place sooner than the scheduled date. As per the news roaming around, BTC’s next halving will occur in one year and 157 days, and that implies we can now expect it in December 2023. “That Martini Guy” who is a well known crypto influencer, likewise talked about this new development in his latest tweet. The fact that it is now going to take place sooner is a good sign for BTC, as the information suggests that halving is occurred due to significant price surges. For instance, during the 2020’s BTC halving, Bitcoin was at the price of $8,500 and after halving in only a couple of months it went up to more than $27,000. However the whole picture appears to lean in the favor of buyers in the market.

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