Category: Blog-new

In the fast-moving space of digital currencies, Bitcoin is the pioneer cryptocurrency that occupies the attention of crypto enthusiasts from all over the world. Amidst all its technical complexities, one thing that is the core of the very nature of Bitcoin is “Bitcoin halving”. In this guide, we will delve into the internal mechanisms of this phenomenon and find out why it is so important for Bitcoin’s value proposition.

Understanding Bitcoin’s Intrinsic Value

Before we dive into the Bitcoin halving, let us first understand why Bitcoin holds value. Contrary to fiat currencies, which can be printed infinitely by governments and central banks, Bitcoin stands on the foundation of verifiable scarcity. The Bitcoin protocol ensures that the total amount of coins in circulation is fixed at 21 million. This limit is built-in, which is quite different from the traditional systems, making it impossible for more BTC to be created, thus ensuring its scarcity and value over time.

What Is Bitcoin Halving?

Bitcoin halving refers to an event usually repeated every four years, when the reward for mining new bitcoins is halved, i.e., reduced by 50%. This is the backbone of Bitcoin’s economic model as it impacts the rate at which new Bitcoins are issued and circulated.

For example, in May 2020, the mining reward was cut in half from 12.5 to 6.25 bitcoins per block. In the third week of April 2024, it is expected to reduce more to about 3.125 BTC per block. This process will continue until all 21 million Bitcoin are mined, forecasted to happen by the year 2140.

At Coinsdrom, we integrate the most cutting-edge technologies to stand as the most reliable, nimble and convenient platform in the cryptocurrency exchange market. Being aware of the impact of the Bitcoin halving event, we have set up our platform to help the users capitalize on this key crypto world moment. We make sure that they are well-prepared with the essential information and tools to make intelligent decisions.

How Does Bitcoin Halving Work?

Bitcoin transactions are validated by a distributed network of miners or validators in a process called mining. Miners, who are considered the spine of the Bitcoin network, run their computers with powerful equipment to solve complex mathematical problems. These miners are rewarded with bitcoins for completing the task of being the first to verify a block of transactions and adding it to the Bitcoin blockchain. The Bitcoin halving event cuts the mining reward by half, making the process more competitive and resource-intensive over time.

The Bitcoin protocol prescribes that this reward is halved every 210,000 blocks, which is about every four years, causing a lot of price volatility in the Bitcoin market during such periods.

Is There Any Impact of Bitcoin Halving on BTC Price?

The halving events have usually proven to be the triggers of major price swings in the past. An instance of this was the halving of block reward from 50 to 25 BTC in 2012.  During the next couple of months after halving, the price showed significant growth that led to a bull market peaking in late 2013, with Bitcoin reaching over $1,000 – the all-time high of that time.

Although the price of Bitcoin typically spikes around these halvings, it is important to remember that price movements are speculative and often affected by other factors, aside from just supply and demand. Global events, public perception regarding cryptocurrency, and other economic factors are the key determinants of the price dynamics. 

Therefore, while halvings generally give rise to expectations of price growth because of lowering supply, these expectations may not always be realized.

Bottom Line

The idea of bitcoin halving is a key to the comprehension of Bitcoin’s value and its deflationary nature. Through a systematic process that decreases the speed at which new coins are created, the network guarantees that the currency remains scarce and valuable through time. 

With each next halving event approaching, we expect the market to be full of speculation and anticipation. At Coinsdrom, our clients can easily buy Bitcoin by using different payment methods like credit cards, bank wire transfers and local payment mechanisms. Our brand is ever determined to strictly adhere to the relevant laws and regulations in order to create a safe and compliant arena for all our users.

Entering the world of cryptocurrency can be both thrilling and intimidating, especially with the constant influx of new projects vying for attention. Amidst this sea of possibilities, it’s crucial to navigate with caution and discernment, ensuring that your time and energy are placed in projects worthy of your trust.

At Coinsdrom, we are constantly engaged with our audience and share insights for people who want to be part of the crypto space. With that being said, let’s see some of the basic qualities you should look for when determining if a new cryptocurrency is to be trusted.

1. The Coin is Listed on a Safe Crypto Exchange

A foundational aspect of assessing the credibility of a new cryptocurrency project is its listing on a safe crypto exchange. Established platforms typically have stringent listing criteria and conduct thorough due diligence before adding new assets to their roster.

By choosing cryptocurrencies listed on a safe crypto exchange, you can significantly reduce the risk of falling victim to scams or unreliable projects. These companies provide a level of assurance, as they prioritize security and compliance, fostering trust within the cryptocurrency community.

2. Transparent and Competent Team

Behind every successful cryptocurrency project lies a transparent and competent team. Users should scrutinize the backgrounds and qualifications of the team members, ensuring they possess relevant expertise in areas such as blockchain technology, software development, finance, and project management.

Transparency is paramount; credible projects readily disclose information about their team members, including their roles within the project and any past successes or experiences. If you see a project listed on a safe crypto exchange backed by a solid team, things start to look good, based on our opinion.

3. Clear Roadmap and Purpose

A trustworthy cryptocurrency project will have a well-defined roadmap and a compelling purpose driving its development. The roadmap should outline the project’s objectives, milestones, and development timeline in a transparent and accessible manner.

Additionally, the project’s purpose should resonate with you and address real-world challenges or opportunities within the cryptocurrency ecosystem. Projects with a clear roadmap and a defined purpose demonstrate foresight and planning, instilling confidence in their ability to execute and deliver on their promises.

4. Community Engagement and Support

Community engagement serves as a barometer of a cryptocurrency project’s credibility and potential for success. A strong and active community indicates widespread interest and support for the project, fostering a sense of trust and legitimacy.

You should look for projects with vibrant online communities across social media platforms, forums, and dedicated discussion groups. Engaged communities provide valuable feedback, promote project awareness, and serve as advocates for the project’s long-term success.

In conclusion, trusting new cryptocurrency projects requires diligence, research, and critical thinking. By considering factors such as listing on a safe crypto exchange, the credibility of the project team, the clarity of the roadmap and purpose, and the strength of community engagement, you can make informed decisions.

Coinsdrom wants to help you be aware that the allure of new opportunities may be enticing, so it’s essential to exercise caution and conduct thorough due diligence before committing to any new project.

Choosing the perfect crypto wallet is akin to selecting the ideal tool for a particular job – it requires careful consideration of various factors to ensure optimal performance and control. Whether you’re an experienced user or a crypto newcomer, understanding the key factors in selecting a wallet can make all the difference in managing your digital assets and facilitating seamless transactions. Here’s what you need to know:

1. Control vs. Convenience

The age-old trade-off between control and convenience holds in crypto wallets. Cold storage wallets, such as hardware or paper wallets keep your private keys offline. However, accessing funds from cold storage can be less convenient than hot wallets, like browser extensions or mobile apps, which provide instant access but may be more susceptible to online threats. Consider your usage patterns and risk tolerance to determine the right balance between control and convenience.

2. Supported Blockchains and Tokens

Not all wallets are equal regarding blockchain compatibility. Some wallets are tailored for specific ecosystems, such as Ethereum or Cosmos, while others offer broader support for multiple blockchains and tokens. Assess your needs based on the cryptocurrencies you intend to hold and any specific Web3 applications or decentralised finance platforms you plan to interact with.

3. Development and Support

Opting for a well-established and actively maintained wallet can provide added peace of mind in this dynamic landscape. Regular updates and ongoing developer support are essential for addressing vulnerabilities and ensuring compatibility with evolving blockchain protocols. Additionally, established wallets often boast a robust user community and a wealth of integrations with third-party services, enhancing their overall functionality and utility.

4. Budget

While many software and paper wallets are free, hardware wallets typically require a financial investment. Prices can vary significantly depending on the device’s brand, features, and control capabilities. Consider your budget constraints and weigh the cost against the features offered by different wallet options.

5. Additional Features

Beyond basic storage and transaction capabilities, some wallets offer additional features, such as token swaps, non-fungible token support, portfolio tracking, and more. Evaluate whether these supplementary features align with your specific needs and preferences, as they can enhance the overall user experience and streamline your crypto management tasks.

6. Reputation and Provider

Lastly, it’s crucial to vet the reputation and credibility of the wallet provider before entrusting them with your digital assets. Stick to reputable companies with a proven track record in the crypto industry, and exercise caution when dealing with newly launched or lesser-known providers, especially if their offerings seem too good to be true.

Selecting the right crypto wallet requires careful consideration of factors such as access control options, blockchain compatibility, ongoing support, budget, additional features, and the provider’s reputation. By weighing these considerations against your individual needs and preferences, you can confidently choose a wallet that suits your requirements and empowers you to navigate the exciting world of cryptocurrencies.

Cryptocurrency, the digital frontier of finance, has seen its fair share of ups and downs, with perhaps none more intriguing than the phenomenon of the cryptocurrency bubble. In simple terms, this bubble occurs when the market values cryptocurrency assets far beyond their intrinsic worth, leading to inflated prices and, eventually, a dramatic collapse.

Historical Context: From Booms to Busts

The history of cryptocurrency bubbles is peppered with remarkable events. Take, for instance, the early days of Bitcoin. In 2011, Bitcoin’s price skyrocketed to over $29, fueled by media attention from articles on the dark web market Silk Road. However, this euphoria was short-lived, as the price plummeted to just over $2 later that year.

Fast forward to 2017, and we witnessed another historic boom, with Bitcoin reaching an all-time high of nearly $20,000. Yet, by early 2018, the bubble burst, and Bitcoin’s price tumbled by over 65%, triggering a market-wide crash that saw cryptocurrencies lose 80% of their value by September of that year.

Lessons Learned: ICOs and Market Dynamics

The rise of initial coin offerings added fuel to the fire, attracting users eager to replicate the early successes of Bitcoin and Ethereum. However, as Wired noted in 2017, the ICO bubble was primed for a burst, with many projects failing to deliver on their promises.

Even notable players in this space, which emerged as the largest cryptocurrency platforms, acknowledged the need to combat scams, signalling a shift in sentiment towards greater scrutiny and regulation.

Navigating the Future: Volatility and Regulation

As we look to the future, it’s essential to acknowledge the inherent volatility of the cryptocurrency market. From the rapid ascent to dizzying heights to the gut-wrenching crashes, navigating this landscape requires caution and due diligence.

Moreover, increased regulatory scrutiny is reshaping the cryptocurrency ecosystem, with governments and financial institutions scrutinising how these assets are bought and sold. While regulation may bring stability, it also challenges the decentralised ethos underpinning cryptocurrencies.

The cryptocurrency bubble phenomenon is a testament to the dynamism and unpredictability of digital finance. While the allure of quick gains may be tempting, it’s essential to approach this market with a healthy dose of scepticism and a long-term perspective. After all, the true value of cryptocurrency lies not in speculative bubbles but in its potential to revolutionise the way we transact and interact in the digital age. As we continue to navigate this evolving landscape, let’s learn from the lessons of the past and chart a course toward a more sustainable and inclusive future for cryptocurrency.