Billions of dollars in Bitcoin have remained dormant for more than a year but Bitcoin is performing fantastically regardless, an NBA star is set to give away Bitcoins to his teammates in the wake of his own new Ethereum-based token launching, and Ethereum is set to implement a cleaner, more efficient version of itself to usher in the a decade.
Digital Asset Data, a notable fintech firm, has stated in a recent report that more than 10 million Bitcoins have not moved in more than a year. The dormant Bitcoins represent approximately 60% of the entire supply of Bitcoins and it has been two years since such a large proportion of Bitcoin supply has remained dormant. The total amount of dormant coins is valued at more than $86 billion.
With so many Bitcoins sitting dormant, there is one question that begs to be asked. How do all the dormant Bitcoins affect the prices and price fluctuations of the Bitcoin market as a whole? While the answer to that is a somewhat complicated one, it can be simply said that it is the long-term Bitcoin holders who have the most control over the Bitcoin’s price as it ebbs and flows. They are often unaffected and unresponsive to the trends and scares that occur on the Bitcoin network, and that gives Bitcoin some stability – even at its most volatile times.
One interesting factor to note is that towards the end of 2018, the percentage of dormant Bitcoins was clocked at approximately 35%, while the end of 2019 saw a figure almost twice that. Analysts point to this oft overlooked detail to highlight greater stability for Bitcoin in coming months.
NBA player Spencer Dinwiddie is making waves at the National Basketball Association by creating his own cryptocurrency based on Ethereum. The player plans to launch a cryptocoin that is tied to the price of his contract, allowing his fans and other interested parties invest in a new way. According to the NBA, the concept behind the coin breaches some terms of the player’s contract with them. Dinwiddie, therefore, must modify certain aspects of his coin before it can be officially launched.
Dinwiddie created his Ethereum-based coin to create investment opportunities for his fans. Spencer Dinwiddie has a three-year contract with the NBA which is priced at nearly $35 million. The basketball player wants to leverage that money to back his own crypto token that will allow his fans to essentially buy shares of his contract.
According to the NBA, the original version of Dinwiddie’s idea did not comply with NBA rules. When the idea was rejected, Spencer took his investment concept back to the drawing board. After making several changes, the concept was delivered once again to the NBA for review. In an interesting twist, however, the basketball star did not wait for the NBA’s approval before advertising the new investment opportunity on Twitter.
Bitcoin enjoyed yet another key resistance level breakthrough this week, pushing the price of the popular coin into new highs. Investors and enthusiasts alike are now looking forward to a new resistance level exceeding the $9,000 mark. Bitcoin is now comfortably within bull territory and after breaking through the key resistance of $8,300 earlier in the week, and then $9,000 shortly after. Signs point to a higher ceiling in coming weeks, if Bitcoin can find the support it needs above $9,000.
At press time, Bitcoin was trading at $8,900 which is a slight slide when it broke past the key resistance but it seems to be on it’s way back up. All it needs is a high enough push past $9,000 to trigger liquidations.
Ethereum to make a switch from Ethereum 1.0 to 2.0 in an effort to improve usability and reliability. For the Ethereum community as a whole, the upgrade is exciting news indeed. The new version of Ethereum will solve more than a couple issues that plague Ethereum 1.0. For one thing, the file directory is getting a new organizational overhaul: something that will make the platform much simpler to work with, thus enhancing opportunities for more complex and widespread use. Ethereum is already one of the world’s most technically advanced blockchains, so plans to streamline it are always welcome.
As seen recently on Twitter in a message by one of the developers of Ethereum 2.0, the project is now on its way to be audited and the concept for its integration with and eventual replacement of Ethereum 1.0 is approved. Ethereum 2.0 will be methodically deployed and tested by a series of friendly validators who will work to bridge the gap between the current Ethereum and the newly revised edition. The plan sets the stage for a multi-user testnet that will usher in the new Ethereum as it is integrated in different ways.
Ethereum 2.0 will likely affect the price of Ethereum, although the effects may be indirect. The improvements seem to be setting the token up for greater expansion and usability, which should – in turn – push prices up over time. For now, we have to say that Ethereum 2.0 will add value to the popular token, but how much will be dependent on how successful the rollout of Ethereum 2.0 ends up being.
Ethereum 2.0 Phase 0 spec v0.10.0 has been released.— eric.eth (@econoar) January 11, 2020
This is the version that will now go to audit and be the base for the multi-client testnet. https://t.co/1bJK8Me1vX
This has certainly been an exciting week in the world of crypto and blockchain. From news of a daunting supply of the world’s biggest cryptocurrency sitting in digital wallets for well over a year to Bitcoin’s impressive bull run to an NBA star’s promise to give his Bitcoins away, there’s never a dull moment when it comes to cryptocurrency. Add to that the exciting news from Ethereum 2.0 and there is plenty to look forward to in the coming months.
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