NNF: A roller-coaster ride between The Merge and Fed Rate decision!
It was a bumpy week!
This week on NNF (Navigate with Nord Finance), we’ll get a quick overview of volatile market and decode some exciting news.
In addition, We’ll dip our toes into BTC and POW with short knowledge bytes.
Let’s dive in!
NNF of the week:
1 Min Markets:
What a roller coaster ride between The Merge and the Fed Rate decision!
The market ends slightly lower after the Ethereum Merge’s enthusiasm subsides and Fed follows the course to tame inflation with a 0.75 percent rate hike.
Catch the Coin
We’re covering the mighty BTC in this week’s Catch the Coin bytes. Pin this short and simple byte at your desk to get an idea of how far it has come and where it is headed.
BTC Coin Byte:
BTC is the most valuable Cryptocurrency. If you have started investing in cryptos then most likely you own BTC, or you’ll own it once you start your investing journey. So, Let’s get to know BTC and know why is it so valuable?
Bitcoin was launched in 2009 and is the first decentralized cryptocurrency. It enables peer-to-peer (P2P) payments to take place without the need for a central authority — bank, government, or any other financial institution. Satoshi Nakamoto (a pseudonym), described the concept in Bitcoin’s whitepaper in 2008.
Supply: 21 Million Bitcoin.
1 Bitcoin = 100 Million SATs (Satoshis).
Market Cap: > USD 300 Billion*
*On 24 September 2022.
Bitcoin is used as a store of value due to its non-inflationary setup i.e. fixed supply cap. It is also used for cross-border payments between two parties. Several e-commerce merchants are now accepting Bitcoin as a mode of payment.
Every Bitcoin transaction is recorded on the Bitcoin blockchain ledger. The ledger is non-corruptible by any network participant. This is ensured by the Proof of Work consensus mechanism on which the Bitcoin blockchain runs. Nodes and miners form the backbone of the Bitcoin network. Bitcoin transactions are validated by nodes and added to the blockchain in the form of a ‘block’ by miners.
New Bitcoins enter the system by a process called mining. Today, for every block mined, the miner earns 6.25 Bitcoins. These mining rewards are scheduled to halve over time in an event known as ‘Bitcoin Halving’.
The future of Bitcoin seems bright with more governments, similar to El Salvador, set to recognize its legal status. Also, institutional participants are working on providing Bitcoin and crypto-related services like Nasdaq.
We’re demystifying POW (Proof-of-Work) in this segment today. Quickly get a fair idea of POW and its pros and cons to make your investment decision easier.
Proof of Work — What is it? | History, Pros, and Cons:
Proof of work (PoW) is a method of adding new blocks of transactions to the blockchain ledger of a cryptocurrency. Miners are to generate a hash which is a long string of characters that is equal to the target hash for the current block. The crypto miner who generates the hash first gets to add the block and they are rewarded with 6.25 Bitcoins.
Proof of Work is difficult to find but simple to verify the solution. Bitcoin’s proof-of-work algorithm aims to add a new block every 10 minutes. It does this by adjusting the difficulty of mining based on how quickly miners add blocks. When mining occurs too quickly, hash computations become more difficult. They become easier if the pace is too slow.
Proof of Work (PoW) was first proposed by Cynthia Dwork and Moni Naor in 1993, and Satoshi Nakamoto implemented it in the Bitcoin paper in 2008. In a 1999 publication, Markus Jakobsson and Ari Juels coined the phrase ‘proof of work’.
- Security of the highest level.
- Defends against DDoS attacks.
- True decentralization is achieved.
- Transparent rewards system.
- Inefficient — 5 to 7 transactions per second.
- Extensive use of energy and hardware.
- High environmental impact.
KYCN (Know Your Crypto News)
The week was full of exciting and positive news. Check out the headlines first, Pretty interesting, right? But what does it mean? We’ve given simple takeaways that are important for your investment decisions.
Nasdaq is getting ready to offer Crypto custody service to Institutional Clients.
- The move will invite more institutions to dabble in cryptos.
- More adoption from institutions will make crypto less volatile in the future.
Microstrategy gobbles up more Bitcoins, taking their BTC holding to a whopping 130K coins.
- Microstrategy is providing support to BTC at lower levels. Still, Long-term bullish.
- However, We need to keep an eye on their holdings and business. Any unseen liquidation on their side will affect BTC’s price negatively.
OpenSea to Integrate Ethereum Scaling Solution Arbitrum.
- The move will help users and investors on Arbitrum to access NFTs and own it easily.
- In addition, This will give more liquidity to NFTs on Arbitrium
CoinCorner, a global leader in Bitcoin and Lightning Network services, has partnered with Seed Group. UAE is set for a massive Bitcoin adoption.
- CoinCorner will be focusing on establishing a user-friendly platform where UAE residents can buy, sell, send, receive, and store bitcoin.
- This will accelerate the adoption of BTC in the UAE
Binance creates a global advisory board led by a former US senator! A bold step toward solving regulatory issues.
- The move will fast-track the process of regulatory clarity.
- Clear regulation will bring more adoption of Crypto that can drive value appreciation of Crypto assets in the future.
BTS Scoop of the week:
Our NNF (Navigate with NordFinance) newsletter subscribers have received a quick update on what’s happening behind the scene of our upcoming Crypto Investment Platform. Next Week, we’ll release a sneak peek of the platform to subscribers. So, Don’t forget to subscribe.