Over 50,000 Nodes Run Bitcoin Worldwide, 12 Years after Satoshi’s First Client

Alexander Salazar
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Over 50,000 Nodes Run Bitcoin Worldwide, 12 Years after Satoshi’s First Client

In the early days of Bitcoin, only two nodes were running the first Satoshi client. Currently, there are estimated 9,000-55,000 Bitcoin nodes at the global level.

Bitcoin initially only had 2 public nodes, but that number could be at least 9,000 at present. However, Luke Dashjr, one of the most prolific developers of Bitcoin Core, considers that that number exceeds 50,000 nodes. The United States, Germany, and France are the countries with the highest number of nodes. Difficulties in calculating the number of nodes running the protocol and the various methodologies to count them have led to this disparity.

Regardless of the number, this jump in the adoption of Bitcoin among miners is considerable. It is necessary to take into account that the text that accompanied the release of the code had a warning from Satoshi Nakamoto.

The creator of the pioneering cryptocurrency noted that he made proof-of-work difficulty ridiculously easy. In other words, a typical PC could initially generate coins in a few hours. Of course, he warned that it would be much more difficult when competition adjusts the difficulty automatically. The bitcoiners who read this warning did not feel discouraged and began to bet on a network that would compete with the economic systems that institutions had established. Bitcoin challenged the mechanisms that Central Banks and States had imposed for the issuance and distribution of money.

Changes in Bitcoin Clients

Twelve years after Satoshi’s first public client, there has been a steady increase in proof-of-work measurement, currently reaching 140,000 EH/s. Hundreds of thousands of computers compete for the reward of Bitcoin, securing the network in the process. Nakamoto said that any attacker would need more power than the “honest” majority to cause damage.

The difference between running a node twelve years ago and today is obvious. At the time, the nodes running the Satoshi client were miners, but those functions separated. It is now possible to run nodes to provide specific services, such as those that wallets using a thin client require to confirm the immediate status of the network. A public Bitcoin client is the software that allows one person, or a set of miners, to run a Bitcoin node. This allows the user to validate transactions on the network and obtain rewards. Besides, each version implements the consensus rules that the community accepts at any given time. The changes that occur in code to improve the network’s efficiency are one example. They include SegWit and Taproot or Stratum V2, both of which help improve performance, privacy, and mining.

Bitcoin’s Beginnings

Satoshi Nakamoto designed the first client to run on Windows, but that changed over time with the adoption of other platforms like Linux. At the time, the reward for mining a block was 50 BTC, which would change every 4 years, through a halving event that would reduce the supply by half.

Just two days after released the first public Bitcoin client, Nakamoto released a second version of the client. It corrected errors in the first and established the continuous development process that the community expects for Bitcoin. At first, few cryptographers accompanied Nakamoto. Among them was Hal Finney, who made numerous programming contributions. Nakamoto released the last client version (identified as version 0.3.19) that he reviewed on December 10th, 2010. Subsequently, several of the people who initially helped the creator of Bitcoin performed the development. The versions that most people have used are those of the Bitcoin Core group, which add more than 60 updates.

By Alexander Salazar

All Economies are Undergoing Transformation through Digitization, According to the European Central Bank

Alexander Salazar
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All Economies are Undergoing Transformation through Digitization, According to the European Central Bank

The ECB says that the adoption of digital technologies would be positive in the long term. Digitization is transforming consumption patterns and business models.

“The digitization revolution is practically everywhere and is transforming all economies,” concluded the European Central Bank (ECB). They recently published an economic bulletin in which they mention new consumption patterns and business models.

In the context of the health crisis that the COVID-19 pandemic has caused, the bulletin reviews the accelerated use of digital technologies and how they affect variables for monetary policy. The financial institution considers that the new reality has an impact on job creation or loss, productivity, and inflation.

Facing this unforeseen scenario, the ECB does not rule out taking measures that allow the continent to resume economic growth. The adoption of digital technologies for remote jobs or new financial services is both a challenge and an opportunity for “convergence”.

“Structural policies, such as those on labor, production, and financial markets, may need an adaptation to fully exploit the potential benefits of digital technologies while preserving inclusive growth,” the ECB stressed in the bulletin. The recovery of the European economy would depend significantly on digitization. Economists predict that there will be a 3.9% increase in Gross Domestic Product (GDP) by 2021 and 4.2% by 2022. According to ECB researchers, the momentum for the adoption of digital technologies could be positive in the long term despite the negative impact of the COVID-19 pandemic on productivity.

Digitization Due to the Challenges of the Pandemic

The ECB’s bulletin mentions a survey that they applied to 72 non-financial companies in the industry and services sector. The companies consulted had to answer what the main long-term effects deriving from the pandemic would be.

The effects that the participants mentioned the most were the increase in telework and the acceleration of digitization. Also, factors such as more virtual sales, more e-commerce, and more virtual meetings were the most prominent.

The institution closely analyzes the changes as they are elements that influence the possible macroeconomic decisions of the central bank. Digitization could even accelerate the creation of new payment methods or the development of alternative mechanisms such as digital currencies.

“Some relevant effects of digitization concerning monetary policy are related to production and productivity, labor markets, wages, and prices. The impact of digitization on the economy depends on the national economic structure and economic policies, institutions, and governance,” added the ECB in the bulletin.

The ECB also highlighted that digitization can affect the structure of the markets and the competition. They consider that this could have an impact on innovation and the role that intangible assets play.

Last December, the ECB issued EUR 500 thousand to alleviate the economic situation. At the same time, billions of institutional US dollars entered Bitcoin (BTC) as a form of hedge against a potential surge in inflation.

By Alexander Salazar

Having a Price above USD 41,700, Bitcoin Exceeds the Market Value of Facebook and Tesla

Alexander Salazar
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0
Having a Price above USD 41,700, Bitcoin Exceeds the Market Value of Facebook and Tesla

The price of Bitcoin reaches new all-time highs, above USD 41,700. The pioneering cryptocurrency should increase its price almost three times to be able to surpass Google.

There seems to be no end to the bullish momentum of the main cryptocurrency in the market. With a price above USD 41,600 and a market capitalization of USD 775 billion, Bitcoin exceeds the value of Facebook and Tesla. However, the volatility of the market causes this to vary from minute to minute.

In that way, the cryptocurrency that Satoshi Nakamoto created ranks 8th in financial assets globally, according to data from CompaniesMarketcap. While Facebook’s market capitalization is USD 765.44 billion, Tesla’s total value is USD 773.52 billion.

In recent days, the market capitalization of electric vehicle and clean energy company Tesla was almost 10% higher than that of Bitcoin.

If the current conditions of the market remained unchanged, Bitcoin should increase its price by 55% (about USD 64,000 per BTC) to advance one more place on the list. In this way, the pioneering cryptocurrency would exceed the capitalization of global technology company Google, which is USD 1.20 trillion.

According to data from CompaniesMarketCap, the gold market ranks first in the market, assuming that the total world reserves are 12.02 trillion. This is an estimated number as it is impossible to know the total circulation of this precious metal, and there are different criteria on how to calculate it.

To become the market leader, Bitcoin should increase its value almost 293 million times. Even though this task is difficult, some people believe that it is not impossible. Among them, Chinese businessman Bobby Lee estimates that Bitcoin’s market capitalization will exceed that of gold in 2028.

Investment specialists and companies such as SkyBridge Capital qualify Bitcoin as digital gold, with characteristics that outstrip physical gold. One of the members of the board of this company stated that “Bitcoin is better gold than gold itself.”

It is likely that shortly the market capitalization of the pioneering cryptocurrency will exceed the value of Apple, the most valued company. It ranks second on the abovementioned list with a capitalization of USD 2.20 trillion. This can only happen if each BTC trades above USD 120,000.

It is not impossible to imagine Bitcoin at that price, but it should almost triple its current value to get there. However, it would require less growth than it had in the last three months. During that period, its price went from USD 11,000 to the current USD 41,000.

The first cryptocurrency has also surpassed well-known firms such as Visa and MasterCard and the world’s largest electronic circuit company, Taiwan Semiconductor Manufacturing. In recent weeks, Bitcoin’s market capitalization reached USD 607 billion, thus exceeding the value of Berkshire Hathaway’s Class B stock market. Bitcoin’s ability to reach new all-time highs and recover from dramatic falls makes it the best option for both experienced investors and novices alike. Its current market capitalization proves that it is still the king of crypto assets.

By Alexander Salazar

The Growth of Markets during the Pandemic Is Unfortunate, According to David Rosenberg

Alexander Salazar
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The Growth of Markets during the Pandemic Is Unfortunate, According to David Rosenberg

The economist classifies the growth of Bitcoin and stocks as pure speculation. Concerning Bitcoin (BTC), he stated that its parabolic growth is “highly abnormal.”

David Rosenberg, current strategy leader at Rosenberg Research, questioned what is currently happening in the traditional financial markets and Bitcoin (BTC). The executive considers that the growth that has occurred in recent months is simply speculative.

Among the factors contributing to the bleak scenario, former Merrill Lynch chief economist cites the global health crisis, deteriorating economies, and the difficulty in providing a definitive vaccine against COVID-19. For that reason, there should theoretically be nothing to support the current momentum in the markets.

Rosenberg classified what happens in the economic field as a “human misery”, according to an article in Financial Post. Additionally, he mentioned that the Nasdaq index grew by 44% in 2020, while the S&P 500 grew by 16%.

Concerning stocks and cryptocurrencies, he said that “this is the most speculative and momentum-driven market that there has ever been. While Tesla was up by 743% in 2020, Bitcoin soared by 305%. More than 200 Special Purpose Acquisition Companies (SPAC) raised more than USD 80 billion. This is pure speculation.”

Within the world of finance, people know Rosenberg as a bearish or pessimistic analyst. He reiterated that the current situation is a “financial bubble of epic proportions that everyone seems to think that they will get out of in time.”

The economist said in an interview with the television channel CNBC that the shares were overvalued by up to 30%. Regarding the pioneering cryptocurrency, he gave his opinion on the parabolic move of Bitcoin in such a short period. He said that it is “highly abnormal” and that it could be the biggest bubble on the market today.

A Gold Investor with Bitcoin Ignorance

Taking into account his experience in the markets, he said that one asset is currently an exception: gold. Rosenberg thinks that the precious metal recently completed its best year in a decade. Furthermore, he sees it as a better hedging alternative than Bitcoin as it has only one-fifth the volatility of the cryptocurrency.

In the past, Rosenberg has admitted that he is ignorant of many things about Bitcoin, which he says that he does not fully understand. Furthermore, he highlighted that institutional investors who are into BTC also do not have a good understanding of the crypto asset that Satoshi Nakamoto designed.

The fund manager’s perspective contrasts with that of the US investor Bill Miller. The latter stated that having cash and not having Bitcoin is a guaranteed loss, which is why he has maintained investments in BTC since 2014. Rosenberg delivers those views at the peak of Bitcoin’s price boom with unprecedented prices. In just a few hours, the main cryptocurrency on the market broke four barriers, going from USD 38,000 per unit to more than USD 41,000 in recent days.

By Alexander Salazar

Data of 10,000 American Express Credit Card Users in Mexico Is Leaked by a Cyber Criminal

Alexander Salazar
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0
Data of 10,000 American Express Credit Card Users in Mexico Is Leaked by a Cyber Criminal

The hacker warns that it is not possible to use the data to steal funds. American Express suggests that the attack has not directly affected its customers.

There was leakage of data of 10,000 American Express credit card users in Mexico as a result of a cyberattack. The hacker warned that the list does not include sensitive information that would allow the theft of funds. He added that this information is available for free on a dark web forum. According to the website, the hacker could have more bank details of users of the Santander and Banamex banks.

The information became public on the Twitter account of cybersecurity analyst Bank Security. In his post, the hacker says that the disclosure of the data is for marketing and spam purposes only. Furthermore, he states that he could reveal more users´ information from two other Mexican banks in the future.

The information available on the dark website includes full credit card account numbers, names, complete e-mail, and home addresses, contact numbers, dates of birth, and other personal identity information.

An analysis by BleepComputer indicates that there is no information on passwords, card expiration dates, or other information that would allow withdrawing funds directly.

The hacker mentioned this fact on the forum where the list is available. “I do not sell private data such as password, card information, and identification number. The data that I sell or share only exposes you to spam or marketing.”

American Express has not yet confirmed or denied any loss of funds for its customers in Mexico as a result of the data breach. Also, a statement that shows that they shared with BleepComputer indicates that the company had already been a victim of hackers in 2014 and 2016. “We are aware of the reports and will continue to investigate. We have nothing else to share at this time, but if we find evidence of fraudulent activity, we will take appropriate precautionary measures,” American Express concludes. This global service company urges its customers to contact the entity to change their cards or account passwords to protect themselves against future fraudulent acts.

Hackers and Ransomware in Mexico

This is not the first time that hackers have targeted financial institutions in Mexico. Between 2019 and 2020, CIBanco suffered at least two ransomware attacks. This form of hacking hijacks information from victims’ computers or servers to demand a ransom. At the time, hackers threatened to expose the data if they did not receive the payment that they were demanding.

According to a study by research firm Forrest Consulting, 9 out of 10 companies in Mexico and Brazil have suffered some type of cyber-attack at some point. The survey included more than 100 Mexican companies, of which at least 70% suffered four attacks in a 12-month period.

By Alexander Salazar

Chinese Miners Plan to Take Advantage of the Bitcoin Rally by Purchasing Second-Hand Equipment

Alexander Salazar
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0
Chinese Miners Plan to Take Advantage of the Bitcoin Rally by Purchasing Second-Hand Equipment

Bitcoin is generating a daily profit of USD 34 million for the mining industry. An Antminer S9 can now cost more than USD 90, but previously it was not worth more than USD 15.

After becoming scrap metal along with other Bitcoin miners that became unprofitable in 2020, Bitmain’s Antminer S9 has resurfaced in 2021. The miracle has occurred in China, where miners from all over the territory are looking for second-hand equipment to take advantage of the bullish rally.

Calculations from Chinese mining pools indicate that the Bitcoin network is currently issuing more than 900 BTC daily and generating commission income of 109 BTC for miners. This suggests the entire Bitcoin mining industry could be making profits that exceed USD 34 million per day. The bullish rally of the cryptocurrency, which now exceeds USD 35,000, has made it possible to reach that amount.

Bitcoin’s bullish market presents a profit opportunity, which is why miners in China have started buying second-hand ASICs to accumulate more processing power. MicroBT’s M30S++ and M30S devices and Bitmain’s Antminer S19 Pro are currently the most popular and efficient on the market. However, Bitmain’s S9 miners have returned to the profitability of the past and are therefore highly valued items.

After the third Bitcoin halving occurred, Antminer S9’s usefulness seemed to have ended in mid-2020. As a consequence of the reduction of the reward per block mined by half, the increasingly high mining difficulty, and the incorporation of state-of-the-art mining equipment, Antminer S9 was operating at a loss, and many farms replaced it with better-performing miners.

This situation made people forget the S9 miner, one of Bitmain’s popular flagship products of recent years. A few months ago, Antminer S9 cost less than USD 15 in China, but its new boom in popularity has led each of these miners to cost more than USD 90. This value is well below the most modern miners, which exceed USD 4,000 per unit. However, data from the Hashrate Index suggests that it is a global trend and that one of these devices may be worth more than USD 100 USD in January 2021. BTC.com founder Jian Zhuoer confirmed that it is possible to find offers of nearly 100,000 S9 miners ready for deployment on platforms like Weibo. This news confirms that there is an increasingly marked demand for this equipment, even though the rainy season has not yet started in China. Increased installation of mining equipment on farms characterizes this period. Electricity costs decrease considerably since the source of energy that miners use is hydroelectric, and there is a surplus of energy.

Bitcoin Miners are After Profits

Machines like M30S++ and Antminer S19 Pro are the most efficient to do mining work when comparing the profits that S9 miners generate and the latest generation equipment.

The price of Bitcoin is increasingly high, which indicates that even a small profit can seduce its participants. According to local Chinese sources, an S9 miner generates around USD 2 per day. However, machines like M30S++ produce USD 23 since they are the most powerful miners on the market.

The S9 miner continues to operate at a loss, but it is necessary to consider that China is one of the territories with the cheapest electricity rates, according to the ASIC Miner Value website. The price of the cryptocurrency is not the only factor that influences the profitability of a device. This also depends on the cost of the facilities, the cooling of the equipment, the electricity rates, and the maintenance of the place.

This market behavior leads to say that Bitcoin mining is experiencing a positive moment and that the price rise could motivate new miners to connect. According to Blockchain.com, the network’s hash rate is at an all-time high, recently recording 148 TH/s. The increase in hash rate has been constant since November 2020, when it had also reached an all-time high of 146 TH/s, never seen before. According to these metrics, a growing number of machines are connecting to the Bitcoin network since the hash rate would indicate the processing power that the network currently has. Similarly, it is necessary to consider that an increasing number of farms are buying state-of-the-art mining equipment, which will take the hash rate of Bitcoin to unprecedented levels.

By Alexander Salazar

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