[Bitcoin's Trajectory] - Crypto Academy S4W5 - Homework Post for professor @imagen
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How many times has Bitcoin been "halved"? When is the next expected? What is the current amount that Bitcoin miners receive? Mention at least 2 cryptocurrencies that are or have halved.
Bitcoin halving is a term used to describe the splitting of the previous bitcoin mining rewards at regular intervals usually after every 4 years in order to reduce the distribution of the asset and maintaining its value.
Bitcoin has been halved for about 3 times already.
- The initial one happened in 2012, where the previous 50BTC rewards was reduced to 25BTC.
- The next halving happened 4 years after, in 2016. The reward was further divided into 2, from 25BTC to 12.5BTC.
- The third and recent happened in 2020 reducing 12.5BTC rewards reduced to 6.25BTC.
When is the next halving expected to happen?
The next halving is expected to happen in 2024, and with the same principle, the current reward 6.25BTC will further reduce to 3.125BTC.
What is the current amount that Bitcoin miners receive?
Since the last halving event in 2020 last year, Bitcoin miners currently receive 6.25BTC for mining.
2 cryptocurrencies that have halved.
- Bitcoin Gold
The last halving of Bitcoin Gold happened last year, April 18, 2020. Th is saw the reward for mining reduce from the then 12.5BTG to a now 6.25BTG. Just like Bitcoin, halving of Bitcoin Gold occurs every 4 years, thus the next halving will happen in 2024 where mining rewards will reduce to 3.125BTG.
- Litecoin
The last halving of Litecoin happened in 2019 and the next halving event is expected to happen in September 2023, that is 4 years since the last. With the current mining reward at 12.5LTC, after the next event in 2023, this will reduce to 6.25LTC.
What are consensus mechanisms and how do Proof-of-Work and Proof-of-Staking differ?
Consensus mechanisms are standard protocols and algorithms blockchain networks use in validation transactions on the network. This varies depending on the blockchain network and they are very important element to the function of the network. Popular examples are Bitcoin's Proof of Work, Steem's Proof of Brain and Ethereum's Proof of Stake.
Proof of Work is a consensus mechanism used in the blockchain network to validate a block. Here miners solve complicated mathematical challenges and puzzles, with the first miner to finish the puzzle receiving a reward. Satoshi Nakamoto was the first to use this method on the Bitcoin project.
The Proof of Work mechanism ensures decentralization but is energy inefficient and has lesser scalability as compared to the Proof of Stake.
The block is validated rather than mined in the Proof of Stake (PoS) mechanism. The validator to choose is determined by the amount of cryptocurrency held. The larger your stake, the more likely you are to be chosen as a validator. When a transaction is initiated via the PoS process, a validator (the one with the most stake) validates it and adds it to the blockchain.
In comparison to PoW, PoS is more energy efficient and scalable.
Below is a table summarizing the key differences between PoW and PoS.
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Enter the Bitcoin browser and enter the hash corresponding to the last transaction.
This is the link to Bitcoin browser.
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Locate the Latest Transactions tab on the homepage.
You tap on the first item (the most latest transaction) to see the details.
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From the screenshot above the Hash of the latest transaction at the time of doing this work is:
354e611ea3f925c596ce9c36cd70e94fcd9abb3f2835d3ad783dfb8b0dae1f65
What is meant by Altcoin Season? Are we currently in Altcoin Season? When was the last Altcoin Season? Mention and show 2 charts of Altcoins followed by their growth in the most recent Season. Reason your answer.
Altcoin season simply is that point in the market where other cryptocurrencies are seen to be doing well than Bitcoin. Remember Altcoins are other cryptocurrencies other than Bitcoin. In other words, when Bitcoin tends to lose some dominance in the crypto market then we can say it is an Altcoin season.
Are we currently in an Altcoin Season?
For the determination of this, I'll use data from Blockchain center. Some experts contend that it is an Altcoin season when about 75% of other cryptocurrencies other than Bitcoin increase in value within a 30-day, 90-day or a year period. Lets see the data from Blockchain center.
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From the screenshot above, obviously it is not an Altcoin Season because the index stands at 51% which is below the 75% mark.
When was the last Altcoin Season
Data from the Blockchain center indicates the last Altcoin season started on March 25th and ended somewhere around June 21.
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2 Altcoins chart and their growth during the most recent Altcoin Season
- Cardano (ADA)
Cardano is one of the potential altcoins currently in the top 10 cryptocurrencies and doing very well. With Cardano, before the Altcoin season in March, the price was about $1 but during the season, the price rose to $2.473 and since the price has been around this value. See screenshot below.
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- AXS Token
Per the data from Blockchain center, AXS token is the second cryptocurrency that performed very well during the last Altcoin season. Before the Altcoin season, the price of AXS token was about $3 but after the season, we see the price rise and reach an all time high of $155 and a current price of about $125. That is a huge leap. See screenshot below.
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Make a purchase from your verified account of the exchange of your choice of at least 15 USD in any currency that is not in the top 25 of Cornmarket (SBD, tron or steem are not allowed). Why did you choose this currency? What is the goal or purpose behind this project? Who are its founders/developers? Indicate ATH of the coin and its current price.
I choose to purchase Fantom (FTM).
Having attained significant gains during the last Altcoin season among other reasons, Fantom caught my attention. Prior to my decision to invest in this currency, I made some research. It ranked #34 and at the time of doing this work the price was $2.36 on Coinmarketcap.
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I chose this currency because the project is a wonderful one, one that makes it looks like a better version of Ethereum. Fantom is a blockchain platform capable of running smart contracts just like Ethereum. The added benefit and difference from Fantom and Ethereum is transactions on the Fantom platform are less expensive and very fast. Also, unlike many other altcoins which is usually difficult to buy on Exchanges, Fantom is available on several exchanges like Binance, Gemini etc. I believe it has high prospects of doing well in the near future.
The purpose of the Fantom project is to build a highly scalable blockchain system. The project prides itself with providing speed, security and high scalability.
Dr. Ahn Byung Ik, a South Korean computer scientist, founded the Fantom Foundation with Michael Kong as the current CEO.
Fantom recorded an all time high of $2.441 not long ago. See screenshot below.
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Below is the process I went through to make my purchase.
Proof of verification
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Tap Trade from the tabs on the top to enter the trade section.
Use the search bar to find the crypto pair you want to trade. In my case FMT/USDT
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Enter the amount of FMT you want to buy per the price. You see the USDT you are supposed to pay for the purchase.
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Once you get that, hit the buy option and execute the order. Trade was so quick. See here in my order history.
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Again, this is it in my wallet too.
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Conclusion
The term "bitcoin halving" refers to the dividing of previous bitcoin mining rewards at regular periods, in order to reduce the asset's distribution and retain its value. Other altcoins like Litecoin, Bitcoin Gold have also halved.
Blockchain networks employ consensus mechanisms, which are standard protocols and algorithms that are used to validate transactions on the network. Examples are Proof of Work, Proof of Stake, Proof of Brain.
Thanks for reading and big credits to @imagen for this insightful and interesting lecture.
Regards
Gracias por participar en la Cuarta Temporada de la Steemit Crypto Academy.
Continua esforzandote, espero seguir corrigiendo tus asignaciones.