Will Bitcoin Survive the Current Downturn

The most recent piece, which was published by the American Left-based journal Jacobin, claimed that Bitcoin will be extinct in 2022, according to the bitcoin news website 99 Bitcoins. What are the most crucial Bitcoin basics that should be remembered? Would you declare Bitcoin BTC dead if the price of oil, a different commodity, dropped by 55.55 percent in just six months? Any sensible participant in the oil market would take into account factors including supply, demand, and governmental regulations.

Bitcoin Supply

There are only 21 million bitcoins available. However, there is slightly more than 19 million Bitcoin in circulation overall. The majority of Satoshi Nakamoto’s estimated one million bitcoins have never been mined. Over time, many have lost their Bitcoin wallets’ private keys. If the keys are never recovered, the Bitcoin stored in those wallets may be lost forever.

The Hash Rate

When the cryptocurrency’s value plummeted below $20,000 two weeks ago, some miners were forced to mine it at a loss. To put it another way, mining a single Bitcoin costs significantly more than it was worth. According to a digital asset business, the Bitcoin hash rate peaked on June 12, 2022. This proves that the computer resources of the Bitcoin network are now more secure than before.

The Lightinig Network

This is the term used to describe a second layer added to the Bitcoin network that enables transactions to occur outside the blockchain. The force behind Bitcoin’s emergence as the default payment method on the internet is the Lightning Network. The Lightning Network allows users to send millions of Bitcoin transactions per second at incredibly cheap transaction costs. One of the clearest instances of the network’s potential is Paco De La India, an Indian who traveled to 40 countries in 400 days using just Bitcoin.

Asset Regulation

More organizations and people will have the confidence and necessary infrastructure to accept Bitcoin and other digital assets as more governments establish a regulatory framework for digital assets. Some countries, like El Salvador and the Central African Republic, are pursuing full-scale adoption, while others regulate cryptocurrency exchanges and tax cryptocurrency earnings. Australia’s two Bitcoin ETFs (exchange-traded funds) and Binance’s Dubai license are the most notable regulations. The current legislative package in the European Union to govern digital assets is similar.

Read on; Should you buy Bitcoin at the Current Market Price

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