Can Bitcoin’s hard cap of 21 million be changed?
Explore the history of attempts to change Bitcoin’s 21-million hard cap and why it has proven to be hard to create an alternative to the apex asset. Source link
What determines Bitcoin’s price?
Bitcoin’s price is influenced by a mix of factors, including supply and demand dynamics, mining costs, regulatory developments, market sentiment and more. Source link
Replace-by-fee (RBF), explained
What is the replace-by-fee (RBF) policy? The Bitcoin network’s replace-by-fee (RBF) policy enables users to replace pending (unconfirmed) transactions with new ones with higher transaction costs. The RBF policy was proposed in BIP 125 and introduced as a feature in the Bitcoin protocol with the release of Bitcoin Core version 0.12.0, which was released in…
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What is Bitcoin’s fee-to-reward ratio?
The Bitcoin fee-to-reward ratio represents the proportion of total block rewards from transaction fees paid by users in the Bitcoin network. Transaction fees allow users to offer compensation to miners to encourage the inclusion of their Bitcoin (BTC) transactions in a block. To increase their profits, miners frequently prioritize transactions with higher fees. However, the…
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What are crypto-backed mortgages, and how do they work?
Crypto mortgages entail utilizing cryptocurrency holdings as security to bind a conventional mortgage or loan. The procedure to obtain a crypto-backed mortgage starts with the borrower giving their cryptocurrency to the lender as security, with the lender calculating the maximum loan amount depending on the value of the collateral. The acceptability of the cryptocurrency is…
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What is crypto contagion, and how does it affect the market?
Crypto contagion can significantly impact multiple stakeholders in the crypto market, including investors, businesses and the broader financial system. To protect themselves from the negative effects of crypto contagion, each stakeholder should take specific steps. By diversifying portfolios, investors can lower exposure to crypto contagion. This entails purchasing various cryptocurrencies and additional assets like stocks…
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Monetary policy of cryptocurrencies, explained
The design choices, such as the level of privacy — i.e., anonymous or fully traceable transactions — implemented in the creation of a CBDC can have significant implications for monetary policy. Continuing the privacy design choice example, let’s understand its impact on monetary policy in the following two scenarios. Scenario 1: Anonymous and untraceable transactions…
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How to mine Bitcoin at home
Bitcoin mining (BTC) is the process of adding transactions to the Bitcoin blockchain, a decentralized public ledger of all Bitcoin transactions. Miners use powerful computers to solve complex mathematical puzzles, known as proof-of-work (PoW), to validate transactions and add them to the blockchain. In return, miners receive newly minted BTC as a reward for their…
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What is a crypto index fund, and how to invest in it?
While the COVID-19 pandemic’s long-term socioeconomic effects are yet to be known, most economies are still dealing with the effects of the global financial crisis. Moreover, millions of households are under or unbanked, and there are additional obstacles faced by people, including slow wage growth, skyrocketing property costs and government debt as more and more…
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Bitcoin DeFi ecosystem explained
Besides wBTC, Stacks and Rootstock, BadgerDAO, RenVM and Liquid Network promote various use cases of Bitcoin DeFi. BadgerDAO A decentralized autonomous organization (DAO) called BadgerDAO makes it possible for BTC to be utilized as collateral across various DApps. The BadgerDAO uses the Ethereum-based token BADGER for protocol governance and incentive distribution. Users can earn income…
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