Monat: Oktober 2020

A bitcoin whale moved the sum of 88,857 BTC between two wallets.

The $ 1.16 billion transaction makes it the largest ever in terms of fiat money

This transaction is still a far cry from the largest transfer in terms of the amount of Bitcoin Circuit ever made, which took place in 2011.

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An anonymous bitcoin whale has moved the largest amount of fiat value bitcoin in history. The transfer moved 88,857 BTC, worth $ 1.16 billion, from a Xapo wallet to an unknown wallet.

Data from Blockchain.com shows that the whale moved the sum on two respective transactions of 43,185 BTC and 45,671 BTC. At the time of this article’s layout, 1 BTC was trading around $ 13,451, bringing the total fiat value of the transaction to around $ 1,192,194,369.

45,671 #BTC (602,832,400 USD) transferred from #Xapo to unknown wallet

Bitcoin transaction details

The transaction originates from an address associated with a Xapo bitcoin wallet, which could help unravel the mystery of who is behind it. In 2019, Xapo was taken over by Coinbase Custody.

This could indicate that an institutional investor is behind this decision, although this cannot be independently verified. The transaction, which took place on October 26, had a fee of 0.00027847, or approximately $ 3.74. The transaction was confirmed on block 654,364.

The deal overshadows the previous fiat value record set in April 2019 by a transfer of 161,500 BTC from an address linked to the crypto exchange Bitfinex. With a bitcoin price of $ 6,800 at the time, this transaction was worth $ 1.1 billion.

Mt. Gox maintains the record

While this transaction is now the largest bitcoin transfer ever in fiat terms, it is significantly lower than the all-time BTC transaction record set on November 16, 2011 by Japanese crypto exchange Mt. Gox.

The deal , which transferred 550,000 BTC worth just $ 1.32 million at the time, is said to be worth $ 7.39 billion at current prices.

 

It’s not just the Bitcoin price that’s in a consolidation phase.

Network security has also barely changed in the last two weeks. Bitcoin’s computing power is currently around 138.09 EH/s.

The Bitcoin network calibrates every two weeks based on the total computing power that all miners put in. These miners compete with each other to be able to process transactions.

Based on the Proof of Work mechanism, the protocol distinguishes between the miners. The more processing power you deposit, the greater the chance of a block fee.

The total processing power of all miners is currently 138.09 EH/s. This means that the miners from all over the world take 138,000,000,000,000,000 guesses every second, hoping that one of these guesses will give them the right to make a block.

Because we have agreed with each other that this has to be done every 10 minutes, the protocol changes every two weeks. Yesterday there was another calibration of the network. But hardly anything changed: the difficulty dropped 0.0858%.

Is the computing power increasing? Then the difficulty increases as well. Does the hashrate decrease? Then the guesswork also becomes easier. On average, every ten minutes 900 new BTCs come into circulation and the network processes several thousand transactions at the same time.

Mines of gold and BTC

You could compare the minning of Bitcoin to the mining of gold. Gold diggers gamble for nuggets of gold in the ground. An important aspect here is the gold price.

Is gold getting more expensive? Then the prospectors have more resources to find the gold in the ground. This results in an increase in stock-to-flow.

Put simply: a higher price makes it possible to get more gold out of the ground.

In recent years this number has fluctuated.

This is where Bitcoin differs completely from gold. If the Bitcoin price increases, it is also more profitable for miners to use computing power. But this does not result in a changing stock-to-flow ratio. Bitcoin issuance is almost predictable because it is calibrated every two weeks.

With gold, we don’t know how much of it is in the ground. As a result, the scarcity of these assets is not verifiable. On the other hand, history has shown that gold is very reliable.

If Bitcoin becomes more expensive, it does not increase the number of Bitcoin in circulation. Investments in Bitcoin mining do not result in overproduction of Bitcoin. On the contrary, it provides additional security.

It is more difficult for a malicious party to gain a share in the network in order to censor or launch a 51% attack.

The big difference between gold and Bitcoin is the difficulty adjustment, which takes place every two weeks. Just like it happened yesterday with a drop of 0.08%. Despite the fact that this figure hardly changed yesterday, it’s still something to think about.

Michael Saylor, CEO of MicroStrategy, briefly explains this aspect in an interview with Stansberry Research in fifteen minutes.