Skip to main content

Tag: Bitcoin

Bitcoin Halving Demystified: What You Need to Know

What is Bitcoin Halving?

Bitcoin halving is a scheduled event that occurs once every 210,000 blocks, or approximately every four years, that reduces the reward for mining Bitcoin transactions by half. This mechanism is built into the code of Bitcoin by its creator, Satoshi Nakamoto, to control inflation and mimic the scarcity of precious metals. The next halving event is scheduled for April, making it a hot topic in the cryptocurrency community.

Why Does Halving Matter?

The halving event is significant for several reasons. Firstly, it impacts the supply of new Bitcoins entering the market. By reducing the reward for miners, the rate at which new Bitcoins are generated slows down, which can lead to decreased supply and increased demand. Historically, this has had a bullish effect on the market in the months following the halving.

Moreover, halving is seen as a milestone that reinforces Bitcoin’s value proposition as a deflationary currency, unlike fiat currencies which can be printed indefinitely. This scarcity principle is a key reason why many view Bitcoin as “digital gold.”

Historical Impact of Halving:

Looking back, the Bitcoin price has shown a significant upward trend following past halving events. While past performance is not indicative of future results, these patterns are closely studied by investors as they speculate on the cryptocurrency’s future value.

Conclusion:

As we approach the next Bitcoin halving, it’s important for investors and enthusiasts to understand its implications. While the event may lead to increased market volatility in the short term, the underlying principle of reduced supply is generally seen as a positive factor for Bitcoin’s long-term value. Whether you’re new to cryptocurrency or a seasoned investor, the halving presents a unique opportunity to reassess your investment strategy in the context of Bitcoin’s programmed scarcity.

What Gives Bitcoin Value?

Bitcoin has experienced a lot of up and down movement in the last two years, a period that has marked many first all-time highs for the asset. In early January 2020, Bitcoin was trading at around $7,200 and has been steadily climbing since then. In January 2021 the asset took less than a month to surpass $40,000 from $28,000 in December 2020 and on April 14, 2021, it reached a peak of more than $65,000.

Certain factors such as institutional interest fueled the price upward, causing the price to reach its all-time high of $68,000 in November 2021, an 844% increase since then. Bitcoin however experienced some lows, trading below $30,000 in July 2021. It has since recovered and is currently trading above $43,000.

In this period, Bitcoin has been used as a store of value by many people, jaded by the state of the economy especially after the onset of Covid-19.

What gives gold value

In order to understand the value of bitcoin one must understand the origins of currency itself. The value of gold has been influenced by the many use cases of the asset such as expensive jewelry, store of value, means of exchange and as an artifact meaning it is a high worth commodity. Over the years the demand for gold has increased as the amount in central bank reserves has significantly reduced, causing scarcity. As such, the inefficiencies in demand and supply have pushed the value upwards. Additionally, the supply of gold is finite given that it is mined in a few places in the world. Therefore, although there is demand for the commodity, its supply is limited.

What gives USD value

The gold standard was the monetary system used by countries such as Britain and the U.S. where the currency was directly linked to gold. In 1971, President Richard Nixon announced that the U.S. would no longer follow the gold standard which converted dollars to gold at a fixed value, giving USD value as it was the only accepted means of payment.

Fiat money is a more flexible instrument to the current complex financial world and USD has served as a means of payment for many years. The currency is also used as the standard currency unit in which goods are quoted and traded and through which payments are settled in the global commodity markets.

What gives BTC value

Bitcoin is a consensus network that enables a new payment system and a digital monetary system. It was the first decentralized digital-peer-to-peer payment network that is powered by its users, eliminating central authorities and middlemen. The creator of Bitcoin, Satoshi Nakamoto, made it a decentralized platform without hierarchical structures seen in many organizations that have contributed to inequality, and lack of transparency.

The decentralized nature of the network has created value for Bitcoin, as control and decision making are not set by a small group of people. All users of the platform have power to make decisions, making it hard to corrupt the system.

Bitcoin introduced the blockchain system that has been adopted by hundreds of platforms to ensure security, transparency and public records on the technology. Without Bitcoin, most of these systems could not exist today. Therefore, the value of Bitcoin can be reflected from the success that these projects that have adopted its technology have attracted, as well as their solutions in the ecosystem. The blockchain technology has consequently revolutionized the way organizations function, ensuring transparency of tasks and decisions as well as making sure records are publicly accessible to users.

The supply of Bitcoin is maxed at 21 million, meaning that there can only be that number in existence in the world. The set number has introduced a fear of missing out (FOMO) in the public who have held large quantities of the asset before the last remaining millions are mined. On average, these Bitcoins are introduced at a fixed rate of one block every ten minutes. The number of BTC released in each of these blocks is reduced by 50% every four years, with the last halving, as it is commonly referred to, having happened in May, 2021. Currently, close to 19 million Bitcoins have been mined.

In many ways, Bitcoin is considered a digital gold. For instance, Bitcoin cannot be created randomly as it requires mining like gold, although Bitcoin is mined through computational means. The mining process ensures that transactions are validated, flow of the asset as well as actors in the system are compensated. The value of this mining process validates Bitcoin as an asset in the financial system.

Effects of the pandemic on Bitcoin

The pandemic is attributed to the burst in activity of Bitcoin because it shut down the economy. The government policies fueled investors’ fears about the global economy, resulting in the rise of Bitcoin, since it could not be regulated by federal governments.

The pandemic also crashed a huge part of the stock market in March, 2020 causing the government to print more money. Consequently, investors and large corporations resulted to holding their assets in BTC as supply is capped at 21 million. Investors were looking for more alternatives to serve as a store of value.

The release of the stimulus checks caused a rebound of Bitcoin from March lows and led to the achievement of new all-time highs. The checks also increased concerns over inflation and a potential weakened purchasing power of the USD leading to inflation. The narrative drew more institutional interest to Bitcoin, leading to multiple companies adding BTC to their balance sheets.

Conclusion

The value of Bitcoin cannot be disputed especially after its rise in the last five years. Owing to the centralized financial and federal systems, many organizational and individual investors have turned to Bitcoin as a store of value and investment option. Apart from being a decentralized, secure, public system, it has also proven to be a great saving mechanism due to the price movements.

 

What is a Bitcoin Wallet?

Exploring the ins and outs of Bitcoin Wallets: An In-depth Review

Introduction

Dealing with any sort of currency, be it fiat or crypto, comes with several basic obligations users have to contend with. The paramount obligation being a place to store the funds safely and securely. Cryptocurrencies like Bitcoin also need a secure storage location, but since they are digital in nature, they can only be held in an electronic wallet.

Whether one is hoping to use their cryptocurrency to purchase goods or services right away or they are planning on investing it for the long term, a secure electronic location is needed to store the funds. This is why a Bitcoin wallet is needed and luckily, they function in an almost similar manner to physical billfolds; they update the quantity of cryptocurrency stored and securely store the information proving ownership of the coins held within them.

How Bitcoin Wallets Work

Dealing with any sort of currency, be it fiat or crypto, comes with several basic obligations users have to contend with. The paramount obligation being a place to store the funds safely and securely. Cryptocurrencies like Bitcoin also need a secure storage location, but since they are digital in nature, they can only be held in an electronic wallet.

Whether one is hoping to use their cryptocurrency to purchase goods or services right away or they are planning on investing it for the long term, a secure electronic location is needed to store the funds. This is why a Bitcoin wallet is needed and luckily, they function in an almost similar manner to physical billfolds; they update the quantity of cryptocurrency stored and securely store the information proving ownership of the coins held within them.

Public Key

In the simplest terms, a public key is a cryptographic code that enhances the facilitation of transactions between users. It allows users to receive cryptocurrencies in their accounts/wallets. With the public key, users can verify the transaction’s digital signature, which is a proof of ownership of the private key.

Private Key

One might think that these wallets’ sole purpose is to store Bitcoin, however, the wallet itself is a representation of cryptographic control over a blockchain address. After initiating a transaction, users receive a set of secret numbers known as private keys, which correspond to their blockchain address book. The private keys are used to sign Bitcoin transactions which gives the user control of the coins in that address.

Users are encouraged to secure their private keys and public keys as much as they can out of reach from attackers because these can be used to move the Bitcoins from their addresses to the attacker’s wallet. It ought to be treated like a password to an online banking account that should not be shared.

Picking a Bitcoin Wallet

Hot and Cold Wallets

Hot wallets are tools that allow Bitcoin owners to store, receive, and send coins. Unlike a cold wallet, a hot wallet is connected to the internet. The hot wallets are linked to the public and private keys mentioned above to help facilitate transactions. Since they have an internet connection, these types of wallets are somewhat vulnerable to hacks. However, most users prefer using hot wallets for convenience rather than security.

Cold wallets, on the other hand, focus on a ‘cold storage’ method for storing a user’s Bitcoin and they have no internet connection. These wallets come in the form of hardware wallets, paper wallets, or a USB stick. They are more secure from outside infiltration because their protocol is completely offline.

Custodial or Non-custodial Wallets

For a non-custodial wallet, users get to enjoy full control of their funds but they have to hold on to and own their private key. Users have to hold the keys in encrypted storage and take full responsibility of their funds. The non-custodial wallets can be hardware devices like USB drives disconnected from the internet, web and mobile wallets that can be accessed on any device using a private key login, and desktop wallets that are strictly found on the user’s preferred computer’s desktop. Non-custodial wallets require users to enter an alphanumeric code each time they want to access their funds.

Custodial wallets bring in an air of convenience to those joining the crypto scene because the first time a user purchases crypto, their funds will get deposited in a custodial exchange crypto wallet. The exchange where the funds will end up is the custodian of your funds; they hold your keys and are responsible for providing the security of your funds. Compared to non-custodial wallets, the custodial wallet is the most preferred one in the crypto ecosystem because users do not have to contend with a lot of responsibility, plus they are more convenient. Users are encouraged to use reputable custodial wallets; a good place to start would be looking into the major U.S. crypto exchanges offering these services.

Types of Wallets

There are multiple software wallets to choose from when one wants to find a location for storing their cryptocurrency. Software wallets are connected to the internet and simply put, it is a wallet that one can download on a smartphone or on the desktop of their computer. As it was mentioned earlier, newcomers to the crypto sphere should conduct proper research on the reputable crypto exchanges in the U.S. and choose one that works for them (the U.S. places strict regulations on the crypto ecosystem so it would be hard to find an exchange out to abscond with user funds).

One simple and reliable Bitcoin software wallet is HODL Wallet. Simplicity and reliability are good features to look out for, but the best-selling feature for HODL Wallet is their security. The HODL Wallet application is available on Google Play and Apple App Store for download and this guide serves as a stepping stone to getting started on securing your coins.

The old crypto custodial adage goes ‘Not your keys, not your crypto.’ This is the phrase that best explains the hardware wallet scene. They are physical devices like thumb drives that store a user’s private keys and they are secure enough to use with a device you do not trust. The transaction validation process takes place within this physical device and not the computer, this is because the private key never leaves the hardware wallet.

A good example of a hardware wallet is Trezor, Bitcoin’s first legitimate and secure physical wallet built by SatoshiLabs. With Trezor One and Trezor Model T already out, the company pioneered the development of an isolated environment for offline transaction signing when crypto was in its infancy stages. This hardware wallet also stands out because it minimizes the risk of private key discovery even when the device being used is infected by malware.

The Safety of Bitcoin Wallets

It goes without saying that hardware wallets are the safest, first because they are disconnected from the internet and it gives a user sole responsibility to take all the precautions they can to protect their funds without involving a third party. Non-custodial hardware wallets are tough to infiltrate because users have to remember a long word seed phrase (usually 12 to 24 words) composed of random words before accessing their account. With such a recovery method in place, attacks are almost impossible, unless one shares their backup recovery seed phrase with an outside party. The safety of one’s account is literally in their hands, and it is up to the user to keep their funds safe.

Conclusion

The Bitcoin wallet environment has come a long way, from hard-to-use days to the seamless transaction speeds enjoyed today. The ecosystem is going even further with the incoming smart Bitcoin wallets that are poised to offer better crypto storage experience while granting users full control over their assets just like hardware wallets do. Custodial wallets are popular but just like any other crypto feature, users always demand for more control over their digital assets, just like decentralization requires. Non-custodial wallet providers should now look into ways of revamping the antiquated alphanumeric address and seed phrase process.

How to use a Bitcoin ATM?

Thinking about getting into crypto? Using a Bitcoin ATM is the easiest way to start your first #DeFi journey. In this article, we will explain the most simple and convenient way to buy Bitcoin.

The easiest way to buy Bitcoin with cash

Most people believe that buying Bitcoin is a complicated process, which takes hours of preparation and lots of technical knowledge. However, that’s not true. Did you know there are thousands of Bitcoin ATMs across the United States where you can buy cryptocurrency with cash?

First, let’s explain how a Bitcoin ATM works.

What is a Bitcoin ATM?

A Bitcoin ATM is basically an internet-connected device that allows you to insert or withdraw cash in exchange for Bitcoins by using a digital wallet.

The machine looks just like a regular ATM and is easy to use. It verifies your identity and allows you to scan your wallet’s QR code for completing the selected transaction.

You scan your Bitcoin Wallet QR code so the Bitcoin ATM knows where to send the bitcoin. You then insert the cash and the Bitcoin ATM instantly sends the bitcoin to your wallet. Simple and safe.

Pros of using a Bitcoin ATM

Bitcoin ATMs are currently available in many countries around the world (see here Bitstop’s current location list). Most of them are concentrated in North America and Europe but we’re seeing more and more Bitcoin ATMs pop up in other regions like Australia, Chile, or New Zealand.

Now, let’s look at the pros of using a Bitcoin ATM:

  • Fast and easy transaction
  • You can buy Bitcoin instantly with cash — no need of different cryptocurrencies or pointless exchanges
  • Safe and convenient
  • Thousands of Bitstop Bitcoin ATM locations in the US
  • Instant. #Buythedip
  • Customer phone and email support
  • Bitcoin ATMs make you feel extra cool and futuristic (we swear!)

Bitcoin ATMs are perfect for buying Bitcoins locally because they are instant. You don’t have to go through the hassle of waiting days for an ACH to clear to buy from an online exchange. You get your bitcoin instantly.

What should you bring with you before using a Bitcoin ATM?

You need 4 things to start using a Bitcoin ATM.

  • Your ID
  • Cash
  • Smartphone
  • Digital Wallet for Cryptocurrency

Yes, it’s just that simple!
Your ID is needed to verify your identity. All of your Bitcoins are stored in your Crypto Wallet, right on your smartphone for easier access.

When it comes to choosing the right digital wallet for your Bitcoin, we suggest using HODL Wallet on your smartphone. All you need is to download the app from Google Store or Apple store. This wallet is very secure and easy to use.

Step-by-Step Guide: How to use a Bitcoin ATM by Bitstop

Find the nearest Bitcoin ATM

First, you need to find the Bitcoin ATM closest to you. You can check out Bitstop’s ATM locations and navigate through the map. Most of the machines are placed nearby and are typically open 24 hrs. Don’t forget to bring everything that you need for a successful transaction — your ID, smartphone, and Bitcoin wallet.

Tap “Buy Bitcoin”

You’re now in front of the Bitcoin ATM and you’re ready for your first purchase! Start by tapping the “Buy Bitcoin” button on the screen!

Enter your phone number

The next step is to write down your phone number by using the touchscreen. Then, hit “Enter”. That way Bitstop can message you a temporary SMS code, needed for the transaction.

Enter a temporary pin

You have now received a text with a temporary SMS code. Enter it on the screen and proceed.

Set up a secret PIN

Considering you’re a first-time customer, you will need to come up with a 4-digit secret PIN. Remember this code for even easier access in the future!

Scan your ID

It’s very important that all users stay safe, that’s why identity verification is a must in the crypto world. For that, you need to scan the barcode at the back of your ID by pointing it at the scanner below the screen.

Scan your Bitcoin Wallet

Next, open your Bitcoin Wallet on your smartphone and select “Receive”. Scan the Wallet’s QR Code by pointing it at the same scanner placed below the screen. That’s how the ATM makes sure that your Bitcoin is delivered to the right place, so make sure you’re giving the right information. ONLY USE YOUR OWN BITCOIN WALLET. Never send Bitcoin to someone else’s wallet directly from the Bitcoin ATM.
 

Insert Cash

You can now insert your cash. The screen will load your exchange rate. Check the information, review your purchase, and hit “Send to Wallet”.

Congrats! You did it!

You will immediately receive the desired amount of bitcoin right into your HODL wallet! There’s also a receipt that you can print for your records.

Bitstop’s transactions happen instantly. If there’s a higher demand on the Bitcoin Network, your wallet may need up to 30 minutes to show completed purchase. If there are any questions, you can always contact our customer support via email or phone.

If you’re more of a visual learner, you can also watch our step-by-step video tutorial on using Bitstop’s ATM: How to buy Bitcoin from a Bitstop Bitcoin ATM

Have fun using Bitcoin ATMs. They are one of the best ways to invest in bitcoin for beginners.

Who owns the most Bitcoin?

Who owns the most Bitcoin? If you ask this question to any crypto trader, they will tell you it doesn’t matter. It is all based on supply and demand, meaning that it doesn’t impact the price one way or another if a single person owns more of a coin than someone else.

However, Bitcoin whales are very important for the crypto community.

As of the latest data, there are 114 million crypto holders around the world. Out of them, the top 10k richest Bitcoin holders collectively hold about 5 million Bitcoins. This means that 0.01% of all Bitcoin Holders control 27% of the BTC circulation. (Source: WSJ)

But, who are these people?

Crypto exchanges: The richest Cold Storage Wallet Owners

#1 Binance

Binance owns the largest cold storage wallet address, which as of 2022, holds more than 252,597.22678490 BTC or over 9 Billion dollars and 1.33% of all coins. The first exchange happened on 2018–10–18 at 15:59:18.

#2 Bitfinex

Next up on the list is Bitfinex with 168,010 BTC — over 6 Billion dollars.

#3 Anonymous

Bitcoin’s third-largest non-exchange whale address is 100% anonymous and holds about 127,112 BTC (over 4 Billion dollars).

How much Bitcoin does Satoshi Nakamoto own?

Of course, Satoshi Nakamoto is considered to be one of the richest BTC owners in the world. However, he is not even in the top 100 list.

As of 2022, the current value of this address is over 68.542667 BTC, which equals more than 2 million dollars (at the time of writing this). Nobody knows who the real Satoshi is, so this can be a man, woman, or a group of individuals. However, the address stores information about the very first block mined.

In the corporate world: Which company owns the most Bitcoin?

Besides exchange platforms, MicroStrategy is considered to be the corporation owning the most Bitcoin in the world — over 121,044 BTC. The company develops enterprise software solutions for businesses working with big data and also helps them in adding Bitcoin into the process.

The Government with the most Bitcoin in the world

Bulgaria

It is believed that the Bulgarian Government holds the second-largest amount of Bitcoins in the world — around 213.000 Bitcoins (over 804 million US dollars). This is more than the country’s Gold Reserve and can almost cover the country’s GDP.

Top 5 Countries with the most Bitcoin Holders

Let’s think globally! When it comes to Bitcoin, there’s another ranking that needs some special attention.
According to the latest data, the top 5 countries with the most cryptocurrency holders are the following:

India

  • 100 million crypto holders
  • 7.30% of the population

USA

  • 27 million crypto holders
  • 8.31% of the population

Russia

  • 17 million crypto holders
  • 11.91% of the population

Nigeria

  • 13 million crypto holders
  • 6.31% of the population

Brazil

  • 10 million crypto holders
  • 4.80% of the population

Famous people owning Bitcoin

Do you know who the most famous Bitcoin owners are?

Let’s start with the most obvious — Elon Musk.

Elon Musk — the Crypto Meme King

It’s no secret that Musk’s tweets and memes have a pretty big influence on the market and can even cause volatility. But how much BTC does Elon own?

Even though his public address can’t be found online, it is believed that Tesla holds 42,902 bitcoins, worth around $2.8 billion. According to Bitcoin treasuries and an annual report of the securities exchange, the company is the second-biggest corporate crypto holder.

Shark Tank’s Favorite, Mark Cuban

The famous Shark Tank investor has publicly shared that he, personally, owns Bitcoin and a little bit of Dogecoin. On a podcast, Cuban shared that his crypto portfolio consists of “60% bitcoin, 30% Ethereum, and 10% the rest.” The businessman believes that Bitcoin is “a better alternative to gold” and that’s the reason why he never sold it. However, we’re unaware of the exact amount of BTC.

50 Cent becoming a bitcoin billionaire… And totally forgetting about it

Are you aware of this amazing story?

In 2014, 50 Cent decided to accept Bitcoin payments for his album “Animal Ambition”. However, he completely forgot about it, until recently. According to Coindesk, these crypto sales made the rapper around 8 million dollars in BTC. What a lucky man!

Can you spot the Bitcoin billionaire?

Even though Bitcoin holders remain anonymous, a lot of researchers try to figure out the demographics of a typical holder.

According to the latest data, 79% of the holders are male, while 21% are female. Most of them are under the age of 34 (58%) with a Bachelor’s degree (82%) and an annual income over US$100k (36%). (Source: Cryptocurrency across the world by Triple).

Do you believe that this profile fits the world’s richest Bitcoin billionaires?

Is it possible that you’re already have a friend that’s a crypto billionaire without even knowing?

We would definitely try our best to spot them in the wild, so pay close attention next time that you’re at a Bitstop ATM. 😉

Is it possible to predict the future price of Bitcoin?

Bitcoin prices have been on a wild ride over the past few years. From just a few dollars per coin to an overall-time high price of $64,800 was reached on April 14, 2021, prices have seen some serious highs and lows. So can Bitcoin price be predicted? And if so, what are some factors that could affect future prices?

In this blog post, we will take a look at some of the research that has been done on Bitcoin price predictions, and try to come up with our formula for creating a forecast for the future

Bitcoin Price Prediction: Factors

If you’re thinking about buying Bitcoin, you’re probably wondering if prices can be predicted. Unfortunately, Bitcoin price predictions are not that simple and it is best not to rely on any one sort of information for predictions. While there are some methods that may help you with your forecast, nothing is 100% accurate.

Crypto is a volatile market, which means that prices can change rapidly and without warning.

No financial advice can definitively say whether or not the price of Bitcoin will go up, but there are certain factors that can give us a general idea of where prices might go.

Supply and Demand

One of the first things to consider when trying to predict Bitcoin price is the fact that there is no central authority or government controlling the currency. This means that prices are largely driven by supply and demand, as well as speculation. When there is more demand for Bitcoin than there is available supply, prices will go up. And when there is more supply than demand, prices will go down. This basic economic principle has been one of the main drivers of crypto prices over the past few years.

Adoption

Another important factor to consider when predicting Bitcoin price is market adoption. The more people who use and accept Bitcoin as a form of payment, the higher the prices will be. We are already seeing this happen with more and more businesses starting to accept Bitcoin as payment thanks to Bitcoin ATMs and other high-tech developments. So remember: as adoption increases, we expect prices to continue to rise.

You may want to run a weekly on monthly check of the number of merchants who accept Bitcoin as payment and the number and size of investment funds investing in Bitcoin at the moment. These indicators can give you a better understanding of the market.

Check out the Bitstop Locations page for the latest data on Bitstop Bitcoin ATMs in the US.

Media Coverage

The amount of news and media coverage surrounding a particular coin can affect its price. If there’s a lot of positive news, investors may feel confident buying in, driving the price up. Similarly, if there’s negative news, investors may lose confidence and sell off their holdings, leading to a price drop.

Let’s say you’re reading a lot of new publications about the increase of adoption rates or new partnerships in the fintech industry — then most likely the price of Bitcoin tends to go up at that very moment. However, if there are lots of new wallet hacks or new government regulations, then the price of Bitcoin usually is in a tendency of going down.

That’s why it’s important to follow unbiased and authoritative sources.

Law and Regulation

Finally, another factor that could affect future Bitcoin prices is regulation. Currently, there is very little regulation around cryptocurrency trading. However, this could change in the future if governments decide to crack down on the industry.

As regulations become stricter, it could have a negative effect on prices. It’s important to keep up with the latest legal framework suggested by the U.S. Senate, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the European Union (EU).

Bitcoin Price Prediction with Analysis

There are a number of factors that can affect the price of Bitcoin, which makes it difficult to give an accurate forecast. However, some analysts believe that by looking at the historical data and trends, it is possible to make a fairly accurate prediction.

Technical Analysis

This leads us to the one popular method for predicting Bitcoin prices, called technical analysis. Technical analysts believe that they can identify patterns in past price movements and use this information to forecast future prices. This method is evaluating investments by analyzing statistical trends gathered from trading activity, such as past prices and volume.

You may have heard of support and resistance levels in crypto price charts. Those are the points where the price has had trouble breaking through in the past. These levels help technical analysts with predictions and give them an idea of where the price might struggle in the future.

Fundamental Analysis

Similar to technical analysis, we have fundamental analysis. Fundamentalists believe that they can identify factors that will affect the demand for Bitcoin and use this information to predict price movements. Those experts focus their attention on economic indicators or political events that can change the market.

No matter which method you choose to follow, remember that predicting Bitcoin prices is a risky business. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis which states that stock market prices are essentially unpredictable. Always do your own research and never invest more than you can afford to lose.

Historical Analysis

Looking at previous price history can be another factor to include in your overall analysis. Long term trends aren’t to be solely relied upon but can be very helpful when trying to put together a comprehensive analysis of future price predictions. Bitcoin in the short-term is volatile and can move up or down sharply without much rhyme or reason. The long term trend over the last decade shows us that Bitcoin goes up in the long-term compounding at roughly 100% — 200% per year.

Will the price of Bitcoin go up or down?

You probably have heard all the positive predictions believing that the Bitcoin price will continue to rise in the long run. However, just like in any market, there will likely be some volatility along the way. And you should be prepared for it. Bitcoin might be a better long-term hold rather than a short-term quick cash grab.

By analyzing the factors that we’ve summarized for you, you may be able to develop a better understanding of what direction the price is likely to move in and make more informed predictions. Before making any decisions, be sure to do your own research and consult with a financial advisor. This should not be construed as financial advice. Each investor and crypto fan should be aware of possible corrections in price as demand and supply fluctuate, or as news affecting the market comes out.

Bitcoin Mining vs. Banking: How Much Power Does Bitcoin Mining Use?

Bitcoin is a cryptocurrency that has been around since January 2009. Over the years, its popularity has continued to grow, and more and more people are beginning to use it. But how much energy does bitcoin mining consume? Is Bitcoin mining really a danger to the environment?

In this blog post, we will compare bitcoin mining to traditional banking and see just how much power bitcoin mining really uses.

Bitcoin Mining and Electricity — The Evergreen Question

As you know, the Bitcoin network requires energy to function because it utilizes a Proof-of-Work (PoW) consensus mechanism. This means that in order for a transaction to be considered valid (included in a block), miners must compete against each other to solve math problem. The first miner to solve the problem is rewarded with newly minted bitcoins and transaction fees. This process of verifying transactions and adding them to the blockchain is called mining. It happens about every 10 minutes until another block is found and then repeats.

Over the past few years, lots of people have publicly raised concerns about the energy consumption of the Bitcoin network. Everything consumes energy, so it might help put things into context. What if we compared the energy consumption of Bitcoin with other industries such as the current existing traditional banking system.

Bitcoin Mining vs. Banking Energy Consumption

So how much energy does Bitcoin mining really use in comparison to the traditional banking system?

When you make a transaction at a bank, the bank verifies it and then records it in their ledger. This process uses a lot of energy, as it requires computers and other equipment to run.

On the other hand, Bitcoin mining only requires a computer and an internet connection. This means that it uses much less energy than traditional banking.

In fact, the latest studies show that banking consumes much more energy than the Bitcoin network.

According to a research report on the topic from Galaxy Digital, the energy consumed by the Bitcoin network is 113.89 terawatt-hours (TWh) per year, while the banking industry consumes 263.72 TWh per year. This means that despite popular beliefs, Bitcoin actually consumes less than half the energy of the baking industry. This is because older legacy systems are usually much more inefficient. An analogy would be washing the dishes by hand under the faucet instead of using a dishwasher. The dishwasher uses electricity and water, but much less water compared to running the faucet and much less energy. It’s more efficient overall.

It also turns out that Bitcoin mining uses less energy than the gold industry.

Another interesting finding is that gold consumes around 240.61 TWh per year, which is also a lot more than what Bitcoin consumes for the same period — in fact, that’s less than half. This doesn’t include the significant environmental damage caused by gold mining, especially illegal gold mining from drug cartels used to launder money.

This new data refutes claims of banks as a greener financial solution compared to the Bitcoin network. Of course, Blockchain technology still faces many challenges in optimizing processes and reducing the carbon footprint. That’s why it’s important that we all work towards building a new, alternative system for financial services that helps maintain our sustainable future. Many miners are working together to use a certain amount of sustainably sourced energy for Bitcoin mining. The Bitcoin Mining Council revealed that it successfully collected sustainable energy information from over 46% of the global Bitcoin network, as of December 31, 2021, in its latest voluntary sector survey. The results of this survey show that the members of the BMC and participants in the survey are currently utilizing electricity with a 66.1% sustainable power mix.

Why does the Bitcoin Network need energy?

As we’ve mentioned, Bitcoin mining is a process of verifying and adding transactions to the public ledger, called the Blockchain, by solving complex mathematical problems. Every time a miner solves a problem, they are rewarded with Bitcoin. To put it in perspective, each Bitcoin transaction consumes about 1,173-kilowatt-hours of electricity, according to a study, from MoneySuperMarket. In addition to that, the total energy usage of the Bitcoin network is less than 0.2% of all energy produced (source).

But why are those 1,173-kilowatt-hours of electricity needed?

Actually, their purpose is to maintain the network and help it be:

  • Decentralized
  • Robust
  • Secure
  • Live 24/7
  • Fast
  • Efficient
  • Transparent
  • With a fairer p2p rewarding system

A Greener Bitcoin Network: What can you do to reduce your carbon footprint?

As the world becomes increasingly digitized, the demand for energy-hungry crypto miners is only going to increase. That’s why today, Bitcoin miners are constantly finding ways to improve efficiency and reduce their energy consumption. For example, some miners have started using solar energy to power their operations — with Tesla being the latest example in the industry. Mining rigs powered by renewable energy sources like solar or wind power can greatly reduce the carbon footprint.

There are now several “green” mining pools that only use renewable energy to power their operations. By joining one of these pools, you can ensure that your mining is helping to support a more sustainable operation.

If you’re thinking about diversifying your portfolio, you can always look for new crypto to add to your HODL wallet. Just like there are green mining pools, there are also green exchanges that only list coins that have been mined in an environmentally friendly way. By using a green exchange, you can be sure that your trading is supporting sustainable practices.

You can also buy Bitcoin fastly and securely at any Bitcoin ATM location around the US and switch to a faster and more secure financial future.

Remember: One of the best ways to support green mining is to educate others about it. The more people who know about and understand the benefits of green mining, the more likely it is that more miners will switch to sustainable practices.

So there you have it! Bitcoin mining doesn’t use nearly as much energy as you might think. In fact, it’s actually more energy-efficient than traditional banking. So if you’re looking to save on energy costs, fintech might be a great option for you!

What Is a Bitcoin ATM and How Does It Work?

Bitcoin has been around for more than 13 years now and many individual and institutional investors have already secured holdings in the popular digital asset. However, the rise in BTC prices during last year has brought the attention of newcomers as well, making many people wonder if it is difficult to invest in Bitcoin and how to buy Bitcoin.

While it may initially seem overwhelming trying to figure out how to buy bitcoin, it can be done in just a few simple steps. One of the easiest ways to invest in Bitcoin for the first time is to use a Bitcoin ATM. In this article, we will explain what is a Bitcoin ATM and how does it work, as it’s one of the easiest ways to acquire Bitcoin.

Bitstop Bitcoin ATM

What Is Bitcoin?

Bitcoin is the first cryptocurrency that emerged in 2009, created by anonymous developer Satoshi Nakamoto. While it’s not the first attempt at digital money, Bitcoin is the very first successful one to be implemented in a decentralized way using a blockchain. Bitcoin relies on cryptography for its creation and has introduced blockchain technology to the world — a distributed ledger where new transactions are recorded and new bitcoins are created via “mining” using specialized computers.

There is a total supply of 21 million, the exact number of how many bitcoins there will ever be in the world. New coins are being “mined” daily, meaning many individuals around the world participate in the solving of complex mathematical issues in the Bitcoin blockchain and whenever one of them succeeds in it, they receive an award in the form of 6.25 bitcoins for their work. Due to the set supply of Bitcoin, the mining reward periodically decreases, making the crypto asset even more valuable because of its scarcity.

Bitcoin’s main purpose, as introduced by Satoshi Nakamoto in its initial release, is to become an alternative to fiat government money, which according to the BTC creator, is too dependent on authorities like banks and governments. BTC’s main instrument in achieving this is its decentralization due to the fact that not one central authority is controlling the asset, but many users across the whole world who participate in the blockchain and help to maintain its security and transparency. As a result of the gained attention after the high price Bitcoin reached in 2017, many new cryptocurrencies have emerged, following the BTC path of decentralization and offering additional use cases and utility.

How to Buy and Store Bitcoin

Bitcoin is digital and exists on a blockchain. To be able to purchase bitcoins, you first need to own a digital wallet. There are hundreds of wallets to download. We recommend HODL Wallet which is a simple minimalist bitcoin wallet which is non-custodial. You can also find a list of Bitcoin enabled wallets on bitcoin-only.com.

To keep it simple, Bitcoin works with two types of keys, a public key which is seen by everyone. It’s analogous to your bank account number which you give out to someone who needs to know where to wire you money. There 2nd key is a private one — known only to the wallet owner. This is analogous to your password to your bank account. You don’t want to give out your private key to anyone. Private keys = ownership of your bitcoin. Depending on where you want to store your private keys, offline or online, you can choose between different types of cold storage wallets or hot storage ones, like HODL Wallet, for example.

After you’ve chosen your preferred wallet, you have several options on how to buy Bitcoin. You can purchase BTC on a centralized (CEXs) or decentralized (DEXs) crypto exchange — special online platforms for crypto trading. The difference between the two types of exchanges is the third party that oversees the transactions in centralized exchanges, which is missing from DEXs. Online brokerages also offer cryptocurrencies for trading alongside other assets like stocks, ETFs, or bonds. Bitcoin remains the most liquid digital asset today, despite the many emerging competitors, that’s why most, if not all, exchanges and brokerages offer it for trading.

White glove OTC trading desks like Bitstop Private are another great way to buy bitcoin easily with great customer support. You get your own personal Bitcoin broker to walk you through the process of buying Bitcoin. Its a white-glove style high touch service.

Another way of purchasing Bitcoin is through a Bitcoin ATM. Bitcoin ATMs offer simplicity, convenience and are instant. They are a great option especially for beginners. They are one of the only ways to purchase Bitcoin with cash. Now we’ll explain what is a Bitcoin ATM and how does it work to help you decide if it’s the right method for you.

What Is a Bitcoin ATM and How Does It Work?

Having covered the basics about the first crypto, now comes the time to explain what is a Bitcoin ATM and how does it work. Similar to traditional ATMs, which allow people to withdraw cash using their debit bank card, Bitcoin ATMs are devices that allow people to purchase bitcoin using cash.

Users are able to buy bitcoin with cash. Bitcoin ATMs are always connected to the internet and Bitcoin network and when a transaction is initiated, they propagate a transaction to the Bitcoin network which sends the bitcoin to the customer bitcoin wallet that they scanned in front of the machine.

Some Bitcoin ATMs are one-way meaning they only let you buy or only let you sell Bitcoin for cash. Some Bitcoin ATMs are two-way meaning they let you buy and sell Bitcoin for cash out of the same machine.

What Is a Bitcoin ATM and How Does It Work: Step-by-Step Explanation

First you need to find a Bitcoin ATM near you. To locate the closest one to you, you can check out the locations we currently have on our website. Bitstop has thousands of locations in the US with more popping up everyday. Once you find a location, you need to register at the Bitstop ATM.

You can either register at a Bitcoin ATM in-person or you can pre-register before you get to the Bitcoin on the Bitstop website at account.stg-bitstopwebsite-testnet.kinsta.cloud/register.

Here is a simple video for how to register at the Bitcoin ATM in person:

https://www.youtube.com/watch?v=k1zZt7TrjUQ

Then you will need only four things — the amount of cash you intend to buy BTC with, your ID, a smartphone, and a digital wallet. From there the steps to what is a Bitcoin ATM and how does it work are the following:

  1. Select “Buy Bitcoin” on the Bitstop Bitcoin ATM you’ve located
  2. Enter your phone number
  3. Set up a 4-digit PIN
  4. Scan your Bitcoin Wallet QR code
  5. Insert the amount of cash you want to use to purchase bitcoins with
  6. Review the information and select “Send to your wallet”

Your purchase of bitcoins through a Bitstop ATM is complete!

Pros of using a Bitcoin ATM

  • Easy to use for beginners
  • Instant or much faster that online exchanges
  • Convenient
  • Cash to Bitcoin

Cons of using a Bitcoin ATM

  • Transaction fee is usually higher because of costs of dealing with cash and compliance

What are the reasons people use Bitcoin ATMs?

Although there are literally thousands of individual specific reasons why people buy Bitcoin from Bitcoin ATMs, you can categorize most reasons into 4 categories:

  • Investment (Long-Term)
  • Speculative (Short-Term)
  • Peer-to-peer international remittances
  • Online Payments

Where can you usually find Bitcoin ATMs?

There are over 40,000 Bitcoin ATMs world wide. Most Bitcoin ATMs can be found in the following spots in order of most common to least common:

  • Gas Stations
  • Convenience Stores
  • Shipping Centers and Strip Malls
  • Grocery Stores
  • Smoke Shops
  • Liquor Stores
  • Malls
  • Tourist Centers
  • Airports/Train Stations

Conclusion

Bitcoin ATMs are one of the easiest ways to get started making your first investment in Bitcoin. They are a great way to buy Bitcoin instantly with cash. Not all companies who provide Bitcoin ATMs are created equal. Some have better rates than others and provide better service and value than others. Bitstop is an early pioneer and reputable trusted leader in the Bitcoin ATM industry and has served hundreds of thousands of customers since 2013.

Non-custodial Bitcoin ATMs show their value after many lose billions from FTX implosion

After this week’s massive news about Bitcoin Exchange FTX blowing up, investors and traders and beginning to understand the difference between custodial exchanges and non-custodial Bitcoin services like Bitcoin ATMs. There is a famous expression in Bitcoin: “Not your keys, not your coins.” Everyone is finding this out the hard way after many lost billions when FTX Bitcoin exchange was revealed to essentially be a Ponzi scheme. Investors both big and small found out that their Bitcoin and money on FTX essentially did not exist or was frozen and they could not withdraw.

The FTX exchange was using customer funds to lend to their hedge fund Alameda research to make risky bets without permission. FTX was able to do this because FTX had full control over their customer’s cryptocurrency private keys. If customers used non-custodial services such as Bitcoin ATMs instead, things may have ended up differently. Bitcoin ATMs provide a convenient way for people to buy and sell Bitcoin without having to go through a third party. Non-custodial Bitcoin ATMs are particularly useful for those who want to keep their bitcoin in a secure wallet.


1. Centralized custodians can’t be trusted

It is becoming increasingly clear that centralized exchanges like FTX and others should not be trusted blindly. FTX’s implosion has shown us the importance of understanding the difference between custodial and non-custodial exchanges, as well as the value of decentralized services like Bitcoin ATMs. Even with strict regulation and top-tier investors and backing, it’s clear you really can’t place your trust in institutions to hold your Bitcoin. Investors need to understand why self-custody matters before investing in Bitcoin and cryptocurrencies.

Non-custodial Bitcoin ATMs provide an easy and convenient way to buy and sell Bitcoin. Bitcoin ATMs do not hold your Bitcoin. Bitcoin ATMs require you to take possession of your Bitcoin and cryptocurrency where you self-custody your private keys. This way, you do not have to trust Bitcoin ATMs. You have full control over your money. Bitcoin ATMs are convenient, instant, and non-custodial. You scan your Bitcoin wallet at the machine, insert your cash and the Bitcoin ATM sends the Bitcoin to your wallet which you control. For these reasons, we can expect demand for non-custodial Bitcoin ATMs to continue to grow in the coming years. Bitcoin ATMs are starting to see some of their highest volumes after the FTX crash. Even though the fees for Bitcoin ATMs can be somewhat higher, people are beginning to understand the value proposition of their non-custodial model.

2. The difference between custodial exchanges and non-custodial exchanges

Custodial exchanges are when a third party holds your Bitcoin and cryptocurrency. This third party can be an exchange, such as FTX, or a wallet service, such as Coinbase. Because a third party is holding your Bitcoin and cryptocurrencies, you have to trust that this third party will hold and protect your assets. Centralized exchanges like FTX are especially at risk for security breaches. In the case of FTX, investors found out that their money was not actually held by FTX but was lent to their hedge fund without permission. This caused many investors to lose their money when the exchange went bankrupt.

Non-custodial exchanges or self-custody is when you hold your Bitcoin private keys and cryptocurrencies. Self-custody is important because it removes the need to trust a 3rd party. You control your own private keys. This means that you are in charge of your own money and you do not have to trust a third party. Non-custodial exchanges and services do not require you to blindly trust them. You have control and transparency over your bitcoin.

People are beginning to understand the difference between custodial and non-custodial exchanges. They will either learn quickly the easy way or learn the hard way and lose a lot of money in the process. There are many many cases of Bitcoin exchanges losing the money of people who trusted them.

3. How do Bitcoin ATMs work?

Non-custodial exchanges or self-custody is when you hold your Bitcoin private keys and cryptocurrencies. Self-custody is important because it removes the need to trust a 3rd party. You control your own private keys. This means that you are in charge of your own money and you do not have to trust a third party. Non-custodial exchanges and services do not require you to blindly trust them. You have control and transparency over Bitcoin ATMs provide a convenient way for people to buy and sell Bitcoin and take possession of their own private keys. They are convenient, instant, and non-custodial. Non-custodial Bitcoin ATMs are becoming increasingly important to service people who want to invest in Bitcoin that don’t want to worry about having to trust a 3rd party with custody.


Bitcoin ATMs work by allowing users to scan their Bitcoin wallets at the machine, insert cash, and have the BTC sent to their wallet. They control their money. Bitcoin ATMs do not control user funds. Horrible situations like FTX can’t happen when you are taking possession of your private keys. The problem with online Bitcoin exchanges is that they hold your coins. Because you control your private keys, you do not have to trust anyone else with your money. Centralized exchanges like FTX are at risk for security breaches, but with non-custodial Bitcoin ATMs, you don’t have to worry about that. It’s cash for Bitcoin and Bitcoin for Cash. Instant settlement on both sides. A bearer instrument for a bearer instrument. No credit risk.


Bitstop has been providing Bitcoin ATMs since 2013. We have thousands of Bitcoin ATMs that are conveniently located that provide Bitcoin to your wallet instantly for cash. We have never held customer funds and we have sold tens of thousands of Bitcoin over the last 9 years without losing anyone’s money. We are trusted, regulated and will continue to remain non-custodial to make sure our customers never have to trust us. You can find a Bitcoin ATM near you on our website:


4. The future is self-custody, decentralization, and transparency

Non-custodial exchanges and self-custody are becoming more and more popular as people become increasingly aware of the risks associated with custodial exchanges like FTX. Centralized exchanges are vulnerable to security breaches, and insiders stealing customer deposits. Investors have lost millions of dollars in the past due to hacks. With self-custody, you don’t have to worry about that. You control your own money and you are in charge of your private keys.

Decentralized exchanges are also becoming more popular as people become increasingly frustrated with the lack of security at centralized exchanges. Decentralized exchanges do not require you to trust a third party with your money. They are not always as convenient as centralized exchanges, but the trade-off is that you probably won’t lose your money. Not a bad trade-off to be honest.

Finally, transparency is becoming increasingly important to investors. They want to be able to see where their money is going and they want to be sure that it is safe. Expect radical transparency in the future for exchanges. Cryptographic real-time proof of reserves and proof of liabilities. More on-chain visibility into full-reserve backing and permission required notice when funds are being lent out and to whom.

FTX and countless other exchange blow-ups have shown us that the future is non-custodial and transparent.

Conclusion

Self-custody, decentralization, and transparency are the future of the Bitcoin industry. Services like Bitcoin ATMs and Bitstop have been leading the way for many years. Centralized exchanges are vulnerable to security breaches, and insiders stealing customer deposits. Get your funds off of exchanges! Do not trust these exchanges! Investors have lost millions of dollars in the past due to hacks and theft. You should not have to trust anyone with your money. If you decide that you prefer someone hold your funds other than you, they should have the highest standards when it comes to transparency that your funds are actually fully backed 1:1. Ask the exchange is they show cryptographic proof-of-reserves in real-time including their liabilities!

It’s optimal that you control your own money and you are in charge of your private keys. Practicing self-custody and using tools that make self-custody easy like hardware wallets: Ledger or Trezor is a worthy endeavor. They are not always as convenient but the trade-off is that you probably won’t lose your money.