Bitcoin’s third halving event has been at the heart of recent debates and discussions, generating polarising views on the effect it will have on the cryptocurrency and the ecosystem. To understand why this is such a widely anticipated event, let us first talk about Bitcoin mining and block rewards.
When bitcoin miners successfully add a “block” of transactions to the blockchain, they receive block rewards on top of transaction fees. …
China is coming ahead in the digital currency race, and they are finding themselves in a good position to push blockchain technology to more than a billion citizens.
There is no denying that China has gained a firm grip and heavy influence on the future of the blockchain industry and the prospects of cryptocurrencies. Within the span of a week, a series of announcements from Chinese regulators shook the entire industry, jolting Bitcoin prices and prices of the coins of Chinese-developed blockchains.
These announcements came in stark contrast to a series of gloomy news in the US. The US SEC had just rejected yet another proposal for a bitcoin exchange-traded fund (ETF) listing, and Facebook’s Libra project hits roadblocks after the association lost several of its key founding members amidst relentless questioning by regulators and lawmakers globally. …
“Trust is at the core of any system of money. For it to work, people must feel confident that a currency will be held in the right esteem by others.”
For any currency — traditional or digital — to be viable and widely used by a community or society, the users must trust an authority to honor the value and the transactions in the currency.
To understand what Bitcoin is and why it is important, we have to first understand how intermediaries play a crucial role in providing trust for the money system as we know it.
Suppose I want to gift a gold coin to my friend Liam, so I meet him to pass him the gift. With my physical presence as I hand him the coin, Liam is able to verify…