Published 20. 12. 2021 at 10:00
Again after a week, we bring you a summary of the most interesting events from the world of cryptocurrencies. A lot has happened in the last seven days. We select these messages for you.
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90% of all bitcoins are already mined
Almost thirteen years after the bitcoin network saw the light of day, 90% of the total bitcoin supply was extracted.. Now only 10% remains to be used – but that will take much more time. According to some estimates, this could take up to 119 years.
Only 10% of the #bitcoin supply is left to be mined over the next 119 years ????
— Bitcoin Magazine (@BitcoinMagazine) December 13, 2021
Due to regular halving, difficulty adjustments and other pre-programmed functions, it is estimated that 21 million BTC will be mined in 2140.
Bitcoin crossed this milestone on Monday morning, a year and a half after the last halving. According to current data from the Blockchain.com server, the number of Bitcoins in circulation reached 18.899 million. Bitcoin has a predetermined number of coins of 21 million. It was determined by its anonymous creator Satoshi Nakamoto. This restriction is written in the Bitcoin source code and is enforced by the network nodes. A fixed bitcoin limit is crucial for its value as a currency and investment instrument.
During the first four years, the network produced 50 BTCs every 10 minutes, or about 7,200 BTCs per day. Ten minutes is the average mining time of one block. After the first halving on November 28, 2012, it was 25 BTC per block, ie 3,600 BTC per day. On July 9, 2016, the second halving took place and only 12.5 BTC was produced per unit, ie 1,800 BTC per day. After the last halving in May 2020, only 6.25 BTC per unit will be produced, which means that about 900 BTC will be added to the daily circulation.
By 2040, the block reward will be reduced to less than 0.2 BTC, leaving only 80,000 of the 21 million Bitcoins. It will take almost 40 years to extract the last Bitcoin.
However, not all coins enter the open market. It is estimated that more than 3.5 million coins were lost due to poor security of private keys and / or death of owners. Therefore, it is important to keep in mind that you must keep your private keys safe and secure them even in crisis.
The Doge Award flew after another tweet by Elon Musk
Meme kryptoměna Doge fired by almost 20% after Elon Musk announced on Twitter, that his carmaker Tesla will start accepting this cryptocurrency as a commodity. However, you will not buy a car for DOGE.
Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021
According to a survey by TIME magazine, Elon Musk became the person of the year last week. According to the magazine, the richest man in the world with more than $ 250 billion today is such an influential and unusual personality that in 2021 it was difficult to find anyone else who deserved the award more.
After receiving the reward, Musk seized the opportunity and talked about money during an interview with TIME Magazine. Naturally, he also spoke of cryptocurrencies, more specifically of Bitcoin and Dogecoin. Before talking about the subject, Musk began to defend his merits, claiming that there were very few people who understood the nature of money better than he did.
“I played a significant role in creating PayPal. I think very few people understand my understanding of the monetary system, how it actually works, its detailed mechanics better than I do,“said Musk.
After that, Musk devoted himself to Bitcoin for a while. He argued that BTC’s transaction volume was low and that the cost per transaction was too high. He acknowledged that “at its basic level” is appropriate for preserving value. Musk thus concluded that Bitcoin was essentially not a good substitute for a transaction currency.
He then got to Dogecoin. Although this cryptocurrency was created as a stupid joke, according to Musek, DOGE is more suitable for transactions. The total transaction flow that you can do with Dogecoin is many times higher than with Bitcoin. Musk also said that DOGE is slightly inflationary, but that inflation is a fixed number in contrast to the percentage. Therefore, it will decrease over time. Shortly after making this statement, he also tweeted that Tesla would start accepting DOGE for some goods, which subsequently catapulted its price by tens of percent.
The US Congress is raising the debt ceiling by $ 2.5 trillion
The US government is close to postponing its federal bankruptcy for at least a year after Congress has approved raising the debt ceiling by an incredible $ 2.5 trillion. Markets reacted positively to this news on Wednesday with modest growth, including Bitcoin.
BREAKING: Senate OKs $2.5trillion dollar advertisement for bitcoin
— Tyler Winklevoss (@tyler) December 14, 2021
Founder of Winklevoss Capital Management and the cryptocurrency exchange Gemini Tyler Winklevoss on Twitter said that this is a $ 2.5 trillion ad for Bitcoin. Michael Saylor shared a similar view and replied: “Bitcoin seems to have government support”.
The US House of Representatives approved a previous increase in the debt ceiling in October 2021 by a “more modest” $ 480 billion, raising the limit to $ 28.9 trillion.
The bill passed with a vote of 221 to 209 and is now in the hands of President Bidenwho should sign it soon. If it does, the law will increase the federal government’s debt limit by $ 2.5 trillion to $ 31.4 trillion. However, it is more important for the world’s strongest economy to postpone the threat of insolvency of the federal government until at least early 2023.
Republican Jodey Arrington was disappointed with the end result, noting that the country’s debt level would be at its highest level since World War II and that we are now “not at war.”
With the US printing its national currency over the past two years and often raising its debt limits, the consequences are more than obvious. US inflation rate, which has risen historically by 3.24% and has risen more than expected in the last six months.
In November, there was a sharp increase of 6.8%, which is the highest value in the last 40 years. Even the people behind some of the most important decisions – the Fed chairman Jerome Powell and the Minister of Finance Janet Yellenová stopped talking about fast-rising inflation as “transient”.
The mistake cost the NFT owners almost $ 300,000
If you are at least a little interested in unmistakable NFT tokens, so you’ve probably heard of Bored Ape Yacht Club. This 10,000 NFT collection has become the most successful in the world in a matter of months. Its holders include an actor and moderator Jimma Fallon, rapper Post Malone or basketball player Steph Curru. Currently, the cheapest NFT from this collection is at 52 ETH ($ 208,000).
Bored Ape #3547 was purchased for 0.75 ETH
https://t.co/CNDbDCsf8j– boredapebot (@boredapebot) December 11, 2021
The trader, nicknamed Maxnaut, planned to sell his NFT, but made a fatal mistake and sold his collector’s item for a fraction of the price. Instead of the planned price of 75 ETH ($ 300,000), he entered 0.75 ETH ($ 3,000). The token was immediately purchased by a person who paid a transaction fee of $ 4,000 for fast transaction processing.
“I list a lot of items every day and I just didn’t pay close attention. I immediately noticed an error when my finger clicked on the mouse and the bot sent a transaction with a fee over 8 ETH, so it was sent immediately before I could click to cancel,“revealed the owner of the NFT.
The NFT recorded last month OpenSea doubling the volume of trades after BAYC sales jump up to 900%. This was partly due to a wave of celebrities and influencers who jumped on the wave of Bored Ape popularity. Other proud owners include the famous music producer Timbaland whose NBA Legend Shaquille O’Neal.
Such mistakes are not uncommon in the crypto world. Recently, a man who was trying to sell NFT CrouptoPunk for $ 19 million offered him for sale for $ 19,000. Last month, a company paid a $ 24 million fee for a $ 100,000 transaction. In March, BlockFi was to send 700 GUSDs to several customers. Instead, the company sent BTC worth millions of dollars instead.
Crypto fraud increased by 81% in 2021
According to the blockchain analytical company Chainalysis occurred due to an explosion in the popularity of decentralized finance DeFi over the past year to a huge increase in fraud in the crypto world. Fraud revenue thus reached $ 7.7 billion.
Rug pulls accounted for over 35% of all crypto scam revenue in 2021! Get a preview of what’s included in our 2022 Crypto Crime Report at the link below and don’t forget to sign up and be the first to get the whole report direct to your inbox next year!https://t.co/Uvs8SNpvEG
— Chainalysis (@chainalysis) December 16, 2021
According to the report Chainalysis 2022 Crypto Crime Report Crypto fraud revenue increased by 81% in 2021 compared to the previous year, with so-called “rug pulls” accounting for 35% of all crypto fraud revenue – compared to 1% in 2020.
Rug pulls are scams where developers create a seemingly legitimate crypto project and then run away with investors’ money.
This year, fraudsters have stolen more than $ 2.8 billion worth of cryptocurrencies through these practices. Chainalysis pointed out that code audits that would capture vulnerabilities that allow fraudulent DeFi projects to deplete their liquidity pools are not required for decentralized exchanges (DEX) and are therefore widespread in the DeFi sector.
Although revenues from crypto fraud in 2021 represent a significant increase compared to 2020, they are still lower than in 2019, when they approached $ 10 billion.. The number of deposits for fraudsters’ addresses fell from 10.7 million in 2020 to 4.1 million in 2021.
As in previous years, most stolen cryptocurrencies ended up on regular crypto exchanges. This has not escaped the attention of politicians and regulators, which is why Senator Elizabeth Warren (D-MA) is calling for more regulation of the sector.
It is also interesting that in previous years there was an increase in fraudulent activity, which corresponded to the influx of new (and naive) users into the crypto ecosystem. In 2021, fraudulent activity leveled off, although the price of the largest cryptocurrencies, Bitcoin and Ethereum, rose sharply.
Conclusion on the current situation
The next week of December is over. It can be seen that we are in the pre-Christmas period, when many investors are leaving the market and therefore it is relatively quiet. Bitcoin is in a slightly declining trend, but we still hold on to important support around $ 46,500, which needs to be maintained. We have an important resistance, which is around $ 53,000. If we manage to break this limit, we can talk about the continuation of the current bull run. We will also monitor the situation during the Christmas holidays and bring you the most important things again after a week.
