The organizations will participate in the challenge “3 million SAT” to raise EUR 1,500. The funds will be destined to UNICEF Spain as a contribution in the face of the COVID-19 pandemic.

Nine blockchain communities from Spain will compete in the next solidarity challenge “3 million SAT,” which is aimed at raising at least 1,500 EUR to contribute to the fight against the coronavirus pandemic. The benefit event will be held on Friday, May 25th, and will extend for 24 more hours on the Watafan collectibles platform.

The organizations that will participate are EthicHub, Floc, Crypto Birds, Tutellus, Agora, Non-Central Conf, Bitcobie, Bit2Me, and Blockchain España. Each of these communities will present a collectible card or “watacard,” which will then be raffled among the participants. The enthusiasts will have to contribute five watacoins —equivalent to 5 EUR— to have an option to win and receive the prize in their wallet.

The “solidarity battle” will be accredited to that organization based on the blockchain that has recorded the largest number of participants, while the raised funds will go to UNICEF Spain. Each card will be raffled among the participants of each community specifically. The same user can register in multiple raffles if he or she so wishes.

Spanish communities from the blockchain sector will compete with their best “watacards” during 24 hours. The winner will be the community with the largest number of participants in its raffle. The total amount of the money raised will be destined to the fight against the COVID-19 disease; this is according the site Watafan.com

To participate in the event, the enthusiasts only have to enter their Watafan account and access the link “Participar” (“Participate”). Once being registered, the seed words will be generated, in the case of being a new user. When the participant is on the home page, he or she has to click the icon of the bell to go to the list of the raffles. Of course, they have to remember that the account should have available funds to register in the competition.

The challenge is framed within the third Bitcoin halving, and so the collectible cards will make mention of the event in their designs. The “solidarity battle” will run on the RSK network, an Argentine smart contract project on the Bitcoin network, which serves as a support for Watafan.

The application is a platform of collectible “digital autographs” that has been awarded in the past. It was born so that soccer stars, and other celebrities, can create their collectible cards and receive an incentive for copyright ownership.

Last January 31st, 2020 UNICEF had awarded the project and would advise it to obtain private financing. The Spanish League itself has also awarded the project. In September of last year, they included it on the acceleration list.

The pandemic due to the coronavirus has already reached more than four million infections worldwide, and a balance of more than 284,000 dead people. There is not a vaccine against the COVID-19 disease, and the current epicenter of the pandemic is the USA.

By Alexander Salazar

There were more than 20,000 pending transactions for the last blocks before the halving. The transaction fees were around 100 sat/byte to enter the next block.

This is the third time that a halving has occurred in Bitcoin’s history. That reduction by half in the rewards per block mined is set in the network code every 210,000 blocks. Miners will now go from receiving 12.5 BTC to 6.25 BTC per block.

Given the expectations regarding the price, and after momentarily exceeding USD 10,000, Bitcoin’s value in the market fell below USD 9,000 again, reaching USD 8,400. After a slight rebound, the price went to around USD 8,943, according to data from CoinMarketCap.

Regarding the state of the network, during the hours before the halving, the network was less congested than in previous days and weeks. Besides, there were over 20,000 unconfirmed transactions on Bitcoin, according to data mempool.space.

The numbers on jochen-hoenicke.de coincide, and that record also shows that the number of pending transactions even exceeded 80,000 at some point on April 30^th, four times the current amount. Until now, that level of congestion has been the highest on the network this year.

In recent days, the total number of transactions processed on the network has ranged from 280,000 to 340,000 daily. In the last month, even on April 12^th alone, there were fewer than 240,000 transactions, according to data from Coin Metrics.

On the other hand, it is possible to see on mempool.space that the last 4 mined blocks were 1,195 MB on average. Before the halving, there were about 18 MB of data to confirm among the pending transactions, as the same source shows.

Bitcoin Hash Rate, Fees and other Metrics

During the mining of the last blocks, the average of fees soared again. Between blocks 629,964 and 629,967, fees went from 6 sat/byte to 112 sat/byte. On average, those last fees were equivalent to USD 2.47, according to data from mempool.space.

Meanwhile, the hash rate on the network was close to its all-time high. Data from Coin Metrics show that last Sunday, May 10^th, Bitcoin’s hash rate exceeded 136 EH/s. March 1^st had the maximum so far, with 136.2 EH/s, as the same source indicates.

Consequently, Bitcoin mining difficulty was similarly close to its all-time high. Coin Metrics shows that the difficulty was at 16.10481T, whilst in mid-March, it had reached 16.5529T. After that record, the difficulty of the main cryptocurrency had its biggest drop since 2011.

The number of active Bitcoin addresses was still around 870,000. Although this represents a decrease, compared with previously reported numbers, the figure remained above the averages of recent months.

At the time of writing this article, block 630,000 has already been mined. With this, the third halving in the history of Bitcoin has come and the rewards for mining have been reduced by half. In this way, a new issuance cycle has begun in Bitcoin’s history, in which 6.25 BTC are created per block mined, about every 10 minutes.

By Alexander Salazar

Mega Soft and Cryptobuyer established an alliance for handling transactions. The configuration of the equipment has already started and they would start to operate in June.

More than 20,000 businesses in Venezuela use the platform Merchant Server of the payment processor Mega Soft. After establishing an alliance with the Panamanian startup and exchange Cryptobuyer, they will be able to accept cryptocurrencies.

The agreement offers the possibility, to those establishments that request it, to receive payments with cryptocurrencies such as Bitcoin, Ether, Litecoin, and Dash, among others.

César Hernández, director and partner of Mega Soft, noted that the configuration of the equipment has already started and that they could come into operation next June.

The executive said that Merchant Server works in stores, on cash registers that process payments for products or services. He explained that these devices have already begun to receive upgrades, but each establishment must request their activation to process payments with cryptocurrencies. He added that each business must evaluate whether or not it is convenient for them to accept this type of payment.

To purchase a product or service in an establishment, customers notify the cashier that they are going to pay with cryptocurrencies from their mobile wallets. The cashier indicates to the system that the payment with Bitcoin will be processed, for example, and a QR code is generated to send the transaction from the customer’s wallet to that of the business.

At this point, Cryptobuyer enters as it will fulfill the role of custody or exchange to receive the funds of the establishment, in a previously established account. Hernández stated that businesses will issue their invoices in bolivars (VES) and that Cryptobuyer will establish an exchange rate to calculate the amount to pay with the crypto assets. Besides, it was announced that several businesses have already requested Mega Soft to activate the service.

These companies are reportedly talking with Cryptobuyer to define the most technical aspects of the process. These include the number of commissions, if the businesses prefer to protect the cryptocurrencies at the exchange, or if they want to convert them into fiat currencies and have them transferred to bank accounts.

It is not a matter of installing physical points of sale to process payments with cryptocurrencies, but of updating the platform Merchant Server of Mega Soft, which will be enabled to process payments with crypto assets. In other words, the solution does not involve installing any type of hardware but will work on already active computers.

Adoption in the Country

Jorge Luis Farías, CEO of Cryptobuyer, reported that the technical aspect, legal advice, and negotiation between both parties began more than one year ago.

The executive considers that the market, business people, and the general public understand that the payment with cryptocurrencies is a real alternative to traditional means of payment. He said that the scope of this alliance, which they have managed for more than a year, covers the whole country, especially the largest cities like Caracas, Valencia, Maracaibo, and Nueva Esparta.

Cryptobuyer stated that its solution will allow businesses that operate with Merchant Server to accept cryptocurrencies, to automatically settle their payments in fiat currencies, or to keep the cryptocurrencies stored in their accounts.

Venezuela already has large establishments that accept payments with cryptocurrencies and use Cryptobuyer solutions, among which are the Tamanaco Intercontinental and Eurobuilding hotels in Caracas.

By Alexander Salazar

Since March 16^th, LocalBitcoin has registered an increase in the volume of crypto-exchanges in the Latin American country.

During the second week of May, the renowned crypto exchange platform LocalBitcoin experienced a considerable increase in the volume of Bitcoin (BTC), this increase led to register a record in Argentina.

According to data that the renowned P2P platform shared, between May 4^th to 10^th, it was possible to register a volume of BTC exchange for an approximate value of USD 571,942, a figure that represents the largest number of movements that LocalBitcoin carries out in the South American country.

Matt Ahlborg, Crypto Expert Analysts, invested this new record. He concluded that there is not a very notable increase compared to the number that the platform register in the rest of the world. However, he stressed that there was a significant increase registered in LocalBitcoin Argentina and that this could be the result of the recent exchange control the country approved last March.

In addition to the exchange control, Ahlborg considers that the beginning of the quarantine for the Covid-19 pandemic, during March, could be another factor that must be considered for this increase.

According to a graph that shows the volume of exchanges conducted during March, it is evident that the increase has been progressively escalating over the weeks. For instance, the week of March 16^th to 22^nd, LocalBitcoin recorded exchanges worth USD 214,872; whilst the following week, from March 23^rd to 29^th, the number of exchanges rebounded, reaching an increase of 104%, with a volume of USD 438,573 in exchanges using BTC.

This considerable increase in the volume of cryptocurrency exchange suggests that the industry is experiencing new levels of adoption in Latin America. Some experts consider this fact as an economic relief method since Argentina has faced a deep economic crisis that has led its citizens to experience new ways to save and invest their money. Cryptocurrencies could be their best option.

The Adoption of Bitcoin in Argentina

Argentina represents the third-largest economy in Latin America. According to Ahlborg, the country’s livelihood is based mainly on the export of agricultural products. It also maintains a strong industrial sector that helps sustain the best levels of the middle class in South America.

However, Ahlborg considers that the political situation has produced a high level of instability, developing complex economic problems such as hyperinflation, among others. This whole scenario can be another fundamental factor for citizens to look for different alternatives to have savings and avoid using the local currency.

The researcher adds that, although the exchange of cryptocurrencies is a viable option to maintain savings in Argentine citizens, many prefer to have savings in dollars. For this reason, Argentines have different ways of obtaining the US currency in cash and have their savings on hand. Therefore, cryptos compete directly with the US dollar in Argentina.

Although Argentines prefer to use the dollar to maintain their savings, lately the price of it in the exchange markets has experienced a substantial increase. Thus, a devaluation of the local currency and the increase in the price of the dollar may be pushing citizens to look for different alternatives. Ahlborg considers that this may be one of the main reasons for the consequent increase in the exchange volume at LocalBitcoin.

By María Rodríguez

There has bee a reduction in the reward per block mined on the network from 12.5 BTC to 6.25 BTC. The next halving event will occur in about four years from now, in 2024.

The most anticipated 2020 date for the Bitcoin ecosystem has arrived. Block 630,000 of the Bitcoin network was mined, a milestone that confirms the activation of the third halving event. In this way, there is a reduction in the rewards that miners receive per confirmed block from 12.5 BTC to 6.25 BTC.

As scheduled, Bitcoin reached this block height in the first days of May. According to records of the blockchain, the block was mined at 3:25 on May 11^th. It is the third time that the Bitcoin network has reduced its coin issuance since its launch in 2009.

The last two blocks on the Bitcoin network were rapidly mined, being processed with a difference of just a few seconds. The F2pool group mined the previous block, 629,999, while miners from Antpool processed the long-awaited block 630,000.

The F2Pool group even dared to leave a message on block 629,999, the last mined with a reward of 12.5 BTC. Recalling the first genesis block on the Bitcoin network, the miner hinted at a news story that reads: “With an injection of 2.3T, the Fed’s plan far exceeds the 2008 bailout.″

At the moment, the hash rate of the network marks about 131.05 EH/s, according to data from CoinWarz. On the other hand, the price of the cryptocurrency remains at 8517 a few minutes after the halving, according to CoinGecko figures.

More about the Halving

The Bitcoin halving is a mechanism that is responsible for reducing by half the number of coins that the network issues every 210,000 blocks. In other words, the rewards that miners receive each time they confirm a batch of transactions considerably decrease about every four years

This mechanism aims to self-regulate the Bitcoin supply, which has a limit of 21 million coins. Likewise, as the issuance of Bitcoin decreases, the asset becomes scarcer and, consequently, more valuable. Thanks to the halving, the creation of BTC will not last forever and its end is expected to occur in 2140.

The first Bitcoin halving occurred in 2012 when there was a reduction in the reward from 50 BTC to 25 BTC per block mined. Four years later, in 2016, the process left the issuance of bitcoins at just 12.5 per mined block. With this new activation in 2020, the Bitcoin community will have to wait until between March and June 2024 to witness another halving.

The Bitcoin mining industry will suffer the repercussions of the event since a reduction in the number of bitcoins per block mined directly affects miners’ profits. This could lead to the disconnection of older-generation mining equipment, which would no longer be profitable under the network’s current conditions. However, the current rise in Bitcoin’s price could help this market to reduce the effects of that hard economic hit, and could even extend the life of Bitmain’s Antminer S9.

On the other hand, the community expects the halving to have an indirect impact on Bitcoin’s price. This phenomenon seems to be already occurring, with the fluctuation between USD 8,000 and USD 10,000. Experts do not assume that the halving will fuel a bullish rally on Bitcoin, but they think that it could positively boost its value in the medium or long term.

By Alexander Salazar

The most significant impact of the halving could be on Bitcoin miners’ economy. The short-term bullish market narrative contrasts with that of Bitcoin as a haven of value.

Given the proximity of the third Bitcoin halving, the analysis platform Messari provided several theories to understand this scheduled event. It highlights the role of Bitcoin’s monetary policy in a context where central banks are issuing money continuously. Furthermore, they highlight the idea that Bitcoin is now “part of the public consciousness.”

Last May 6^th, Messari released a report in which it describes the impact that the Bitcoin halving could have on miners’ economy. The text says that, without an increase of 100% in the price to compensate for the reduction in the issuance of coins, miners’ income will be significantly affected.

This scenario indicates that the current increase in Bitcoin’s hash rate will not necessarily be sustained in the long term. Miners will have to deal with the costs to maintain inefficient equipment. Therefore, many miners may disconnect some of their devices after the Bitcoin halving.

This situation could mean greater vulnerability to a 51% attack, according to Messari. However, no one expects a reduction in the hash rate below the levels of June 2019.

The Narrative of Digital Gold

According to Ryan Selkis, CEO of Messari, the halving represents an “official reduction” in Bitcoin’s monetary expansion below the 2% inflationary expectation of the US Federal Reserve (Fed).

Selkis believes that the narrative reinforcement that “Bitcoin is now less inflationary than the Fed” marks Bitcoin’s evolution from beta to production as bona fide digital gold. This could be a gateway for institutional investors who want to enter the cryptocurrency market.

However, research analyst Ryan Watkins considers the halving is, to some extent, a marketing event occurring every four years in which Bitcoin reminds the world of its superior properties. He considers that whilst fiat monetary regimes are inflating at all-time rates, Bitcoin is adjusting its monetary issuance rate to parity with gold. This situation has attracted new investors and the reduction by half of the issuance seems to be a “bullish catalyst.”

However, Watkins does not completely agree with that perspective. He believes that the crisis that the coronavirus has caused still has a lot of influence. Besides, he thinks that Bitcoin has not completely decoupled from traditional exchanges and markets.

Demand, Rather than Supply, Drives Price

Jack Purdy also disagrees with the narrative that reducing Bitcoin issuance will determine the bullish market. He considers that the only factor that could increase the price “of a good with a perfectly inelastic supply is an increase in demand.” However, other studies speculate that the price could drop in the short term.

The halving itself is not all that interesting, according to Qiao Wang, Messari’s Product Manager. He notes that the fact that the halving occurs in a predictable and verifiable manner is the real innovation.

Ryan Selkis acknowledges the power of marketing around price increases in an economy characterized by a supply reduction policy. He argues that, in the case of events like Consensus, if ticket revenue is doubled six weeks before the event, it is easier to predict the final figures. The CEO says that, regarding cryptocurrencies, the doubling date can be further extended by trading the artificial shortage, and the upcoming price increases.

Messari analyst Wilson Withiam sees the Bitcoin halving as a reminder of the work needed to ensure Bitcoin’s longevity in the long term. Besides, research director Eric Turner says that the halving shows that Bitcoin works, and exemplifies its ability to go ahead with a defined monetary policy.

By Alexander Salazar