Thursday, January 26, 2023

Cardano Daily Discussion - January 27, 2023

Hello everyone,

Welcome to the Cardano Daily Discussion!

The standard sub rules apply here (see sidebar), with the exception that price discussion is allowed in this thread, though we encourage you to try not to make this the focus and talk about the project itself. Please ask questions, help others and be civil - be sure to get involved in Project Catalyst too!

If you're new, please make sure you're read through the newbies guide and share it with others (use the ?newbies comment command to reference it).

⚠️ Scam Warning ⚠️

Please read the Cybersecurity guidelines for Cardano Users.

There are ongoing giveaway scams on youtube and many scammers lurking in Cardano's social channels impersonating ambassadors/moderators/official staff contacting users via direct messages.

For example, searching 'cardano' on youtube and sorting by most recent upload date shows several giveaway scams running (all videos in screenshot are scams):

Ongoing 'giveaway' scams on Youtube

The youtube scams are automated; use stolen footage usually of Charles Hoskinson and are restreamed so to appear to be 'live'; appear to have many watchers (which are bots); use bought hacked channels and are edited to appear like official channels.

See this post for more examples of what they look like

Do not be fooled!

To be clear:

  • ⚠️ There is no such thing as a Cardano giveaway
  • ⚠️ Never share your seed phrase with ANYONE
  • ⚠️ Never send ADA to someone promising to send you more ADA back
  • ⚠️ You will never be contacted by ambassadors/moderators/staff

Please report scams on the Cardano Fraud Detection Bureau.

⚠️ Scam Warning ⚠️

https://preview.redd.it/60ofludzpq8a1.png?width=284&format=png&auto=webp&v=enabled&s=7d58fc8aaa2eb5f125624608b97bdd7b943a1111

Midnight Subreddit

In anticipation of Input Output's new data protection blockchain 'Midnight', I've managed to acquire r/Midnight through some negotiation and repurpose it for the Cardano Community (the sub was created for a card game back in 2011 but was mostly unused).

I decided to do this as I thought the project will eventually need a home on reddit and best to setup now before any scammers do. Obviously there's not much to post about on there right now as it's early days as the project is yet to be released, but if you'd like to be kept up to date on the project please feel free to join the new subreddit if the project interests you and I'll be sure to post updates as and when they become available.

Right now the sub is mostly a carbon copy of r/cardano, I've copied most of the automod and rules over, so certain aspects may seem a little incongruent atm, but I'll tailor and tweak the sub as we go. Feel free to send me or post any input if you want stuff to change.

Cheers all


Tuesday, Feb 7 @ 6pm. 4465 N 124th St, Unit A, Brookfield, WI 53005. Who can you invite that might bring $10 for unlimited drinks and bring an app to pass?

Come learn and share about bitcoin mining at The Milwaukee Bitcoin Meetup event.

View Poll


the worst part is that I’m actually watching I Love Lucy as I’m typing this. I don’t even want to imagine what other historical events they’ve tainted with their shitty visuals and “bitcoin” jokes

https://youtu.be/OHanqM0UqOw

7 of the Biggest Bitcoin Crashes

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Bitcoin (BTC) was launched in 2009, becoming the first cryptocurrency ever. Since the early years, the stories of fortunes made by investing in Bitcoin have been part of the crypto world’s allure. However, reports about fortunes lost overnight because of Bitcoin crashes are seldom told.

After more than a decade of existence, Bitcoin’s price still suffers from a lot of volatility. Although the bear market of 2022 caused a massive depreciation of this digital asset, it is far from the only Bitcoin crash in history. In this article, we recount seven of the worst Bitcoin crashes.

Bitcoin Flash Crash in 2011

2011 looked like a promising year for Bitcoin. This cryptocurrency crossed for the first time the psychological mark of $1 in late April. The first-ever Bitcoin rally took place in the following months, taking this asset’s price to $32 on June 8, 2011. But this joy was not long-lived. On June 19, the now-defunct Mt. Gox, a Japanese exchange trading most of the Bitcoin at the time, admitted that hackers had stolen 850,000 BTC from hundreds of accounts on its platform. This event raised concerns about the security of Bitcoin stored on exchanges. As a result, the BTC price plummeted to $0.01 in a single day. Luckily, it was a flash crash only.

The price loss was -99.9%

Bitcoin Crash in 2013

In 2013, Bitcoin was already a successful cryptocurrency. It was an effective payment method, and many enthusiasts considered it a highly profitable investment opportunity. In April that year, Bitcoin trading was quite intense on Mt. Gox to the point that the exchange’s servers could not handle such a high transaction volume. When the platform crashed, hackers took advantage of the vulnerability and attacked. For the first time, Mt. Gox went into a total shutdown, sending the BTC price from around $260 to $50.

The price loss was -83%

Bitcoin Price Drop in 2015

According to CoinMarketCap, the BTC price exceeded $1,000 in late November 2013. However, after hitting $1,077.6 on December 3, 2013, this cryptocurrency entered a bear market. Bitcoin traded at around $519 on December 18. This price drop resulted from the ban on Bitcoin by the Chinese central bank. Although Bitcoin lost 50% of its value in a few days, the downtrend continued throughout 2014, ending with a low of $170 in mid-January 2015.

The price loss was -84%

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Why Bitcoin Crashed in 2017

Bitcoin performed very well in 2017. In December of that year, this cryptocurrency traded at nearly $20,000. But on December 27, the BTC price dropped below $12,000. This downtrend continued into 2018. Bitcoin lost more than 60% of its value in just two months. It ultimately hit $3,200 in December 2018. Why did it happen? Bitcoin was a victim of its own success. As this cryptocurrency hit a new all-time high, investors rushed to harvest their gains from what was clearly a bubble.

The price loss was -83%

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Bitcoin Crash in 2020

2020 will go down in history as one of the most chaotic years in modern times. A global lockdown due to the Covid-19 pandemic crashed the international markets in March of that year. The Bitcoin market crashed very hard too. The BTC price went from over $10,000 in February to less than $4,000 in March.

The price loss was -60%

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Bitcoin Crash in 2021

Many cryptocurrencies exhibited excellent price performance in 2021. Bitcoin was not the exception. In April of that year, Bitcoin hit an astonishing price of $63,000. This cryptocurrency’s market cap exceeded $1 trillion for the first time. But within the next three months, the BTC price plummeted to slightly over $29,000. This crash resulted from growing concerns about the harmful environmental impact of Bitcoin mining. Elon Musk dropped Bitcoin as payment for Tesla cars in May of that year. To add insult to injury, China announced yet another cryptocurrency crackdown, targeting local mining farms.

The price loss was -53%

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Bitcoin Crash in 2022

After the crash of April-July 2021, the BTC price rebounded and set its current all-time high of $68,789.63 on November 10 that year. This digital asset failed to break the $70,000 line and started losing value toward the end of 2021. This price drop was one of the most prominent Bitcoin crashes ever.

By June 2022, Bitcoin traded at less than $20,000, fueling extreme fear in the market. Investors rushed to sell their Bitcoin holdings, making things worse. On November 9, the BTC bottomed at $15,883.16. Then, the price stabilized. As of January 25, 2023, Bitcoin trades at around $22,683.4, showing signs of recovery.

The crisis of algorithmic stablecoins caused the most recent Bitcoin crash, most specifically, the deppeging of the TerraUSD Classic (USTC) stablecoin. Although many investors are optimistic, it is unknown whether the BTC price will return to its previous $68,000 level and when it might happen.

The price loss was -78%

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Conclusion

The above survey shows that Bitcoin has experienced several disastrous price crashes. Yet, Bitcoin is still considered one of the safest investments in the crypto market. This cryptocurrency has demonstrated its ability to recover from all price crashes, rebound, and reach new highs. That’s why many investors are confident Bitcoin will set a new price high in the coming years or even months despite the recent market crash of 2022.

If you are interested in investing in Bitcoin, you can buy this asset on LetsExchange.io. Our platform supports over 2,000 digital coins and tokens and several fiat currencies.

FAQ

Is Bitcoin likely to crash again?

Like most cryptocurrencies, Bitcoin suffers from high price volatility since various factors influence its market value. Hence, the Bitcoin price could crash again in the future.

Why is Bitcoin crashing?

There have been various reasons for Bitcoin crashes throughout its history. The most recent Bitcoin crash of 2022 is primarily attributed to the crisis of algorithmic stablecoins, particularly the depegging of USTC.

Why did Bitcoin crash suddenly?

The Bitcoin price usually crashes suddenly when investors massively withdraw their BTC holdings in response to an unforeseen event, such as a hacking attack.

How many bitcoin crashes have there been?

We reviewed the seven most notable Bitcoin crashes in history. There have been other price drops that some consider minor Bitcoin crashes.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.


Beginner’s Guide to Cryptocurrency

Beginner’s Guide to Cryptocurrency

I. Introduction

• Definition of cryptocurrency: A digital or virtual currency that uses cryptography for security and is suburbanized, which means it’s not controlled by any central authority like a government or financial organisation.

• The aim and potential edges of victimization cryptocurrency: Cryptocurrency are often used as a medium of exchange, a store important , or a unit of account. It may also provide blessings like inflated security, anonymity, and accessibility compared to ancient monetary systems. as an example, cryptocurrency transactions are often completed quicker and at lower price than ancient monetary transactions, and that they are often conducted while not the requirement for intermediaries like banks.

• The fundamentals of blockchain technology: Cryptocurrency depends on a suburbanized info known as a blockchain, that may be a distributed ledger of transactions that’s maintained by a network of computers. The blockchain is secured through a method known as agreement, that involves multiple parties agreeing on the validity of transactions. This makes the blockchain proof against meddling and fraud, as any plan to alter a dealings would ought to be accepted by the whole network.

II. The History and Evolution of Cryptocurrency

• A quick summary of the history and evolution of cryptocurrency: The thought of cryptocurrency are often copied back to the late Eighties, once researchers 1st projected victimization scientific discipline techniques to form digital money. However, it wasn’t till the launch of Bitcoin in 2009 that the primary well known cryptocurrency came into existence. Since then, the cryptocurrency market has big exponentially, with various coins and blockchain-based platforms rising.

• Major milestones within the development of cryptocurrency: This section may cowl vital events or developments that have formed the cryptocurrency landscape, like the launch of Bitcoin, the emergence of altcoins, the increase of ICOs, or the adoption of cryptocurrency by merchants and businesses.

• This state of the cryptocurrency market: This section may give associate update on the dimensions and scope of the cryptocurrency market, likewise as key trends and challenges. as an example, it may discuss the impact of market volatility, restrictive developments, or technological advancements on the market.

III. Understanding the various kinds of Cryptocurrency

• Major cryptocurrencies, like Bitcoin and Ethereum: This section may give an outline of the key options and use cases of the main cryptocurrencies, likewise as their capitalization and adoption rates. It may additionally discuss the variations between these coins and the way they’re utilized in apply.

Various or “alt” coins: This section may cowl the assorted kinds of altcoins that have emerged, like stablecoins, privacy coins, or utility tokens. It may additionally discuss the variations between these coins and therefore the major cryptocurrencies, likewise as their distinctive options and potential use cases.

• Stablecoins and their role in stabilising worth|the worth} of cryptocurrency: This section may justify however stablecoins square measure designed to take care of a stable value and the way they dissent from different kinds of cryptocurrency. It may additionally discuss the potential edges and downsides of victimization stablecoins, like their potential use in hedging against market volatility or the risks related to their establishment.

IV. Cryptocurrency Investment ways

• The fundamentals of finance in cryptocurrency: This section may give associate introduction to the assorted ways in which to speculate in cryptocurrency, like shopping for coins directly, commerce on exchanges, or collaborating in ICOs. It may additionally discuss the potential risks and rewards of finance in cryptocurrency, as well as the impact of market volatility, restrictive changes, and technological developments on the worth of coins.

• Selecting the proper investment strategy: This section may cowl concerns for selecting associate investment strategy, like the investor’s goals, risk tolerance, and time horizon. It may additionally give tips for conducting analysis, diversifying a portfolio, and managing risk. as an example, it may discuss the importance of setting clear investment goals, understanding the risks related to cryptocurrency investment, and developing a concept to mitigate those risks.

• Common mistakes to avoid: This section may highlight common mistakes that novice cryptocurrency investors build and supply recommendation on the way to avoid them. as an example, it may discuss the hazards of shopping for into promotional material, failing to conduct due diligence, or not properly diversifying a portfolio.

V. the long run of Cryptocurrency and Blockchain Technology

• The potential impact of cryptocurrency and blockchain on numerous industries: This section may discuss the ways in which within which cryptocurrency and blockchain technology may disrupt and remodel ancient industries, like finance, provide chain management, or option systems. It may additionally explore the potential edges and challenges of those developments.

• Rising trends and technologies: This section may cowl rising trends and technologies within the cryptocurrency and blockchain area, like suburbanized finance (DeFi), non-fungible tokens (NFTs), or sensible contracts. It may additionally discuss the potential impact of those trends and technologies on the market and therefore the wider economy.

• The role of cryptocurrency and blockchain in shaping the long run of cash and society: This section may explore the potential semipermanent implications of cryptocurrency and blockchain for the world national economy and society as a full. It may discuss queries like whether or not cryptocurrency and blockchain may replace ancient kinds of cash or whether or not they may achieve larger monetary inclusion and accessibility.

VI. The Legal and restrictive Landscape of Cryptocurrency

• This state of cryptocurrency regulation: This section may give an outline of the legal and restrictive landscape for cryptocurrency, as well as the ways in which within which completely different countries and regions square measure approaching the regulation of cryptocurrency. It may additionally discuss the challenges and opportunities of regulation cryptocurrency, likewise because the potential impact of restrictive changes on the market.

• Compliance concerns for cryptocurrency investors and businesses: This section may give steerage on the way to befits cryptocurrency laws, as well as problems like tax news, anti-money washing (AML) compliance, and client protection. It may additionally discuss the importance of staying up to this point on restrictive developments and seeking skilled recommendation once necessary.

VII. The Environmental Impact of Cryptocurrency Mining

• The energy consumption of cryptocurrency mining: This section may discuss the energy intensity of the cryptocurrency mining method and therefore the environmental impact of this consumption. It may additionally explore efforts to mitigate the environmental impact of mining, like the employment of renewable energy or a lot of economical mining hardware.

• The potential for cryptocurrency to drive renewable energy adoption: This section may discuss the potential for cryptocurrency and blockchain technology to drive the adoption of renewable energy, like through the employment of proof-of-work (PoW) algorithms that incentivize miners to use clean energy sources. It may additionally explore the challenges and limitations of this potential.

VIII. Cryptocurrency Scams and the way to Avoid Them

Common kinds of cryptocurrency scams: This section may give an outline of common kinds of cryptocurrency scams, like phishing attacks, pyramid schemes, or faux ICOs. It may additionally discuss the techniques that scammers use to lure victims, like giving high returns, victimization celebrity endorsements, or making faux websites.

• Tips for avoiding cryptocurrency scams: This section may give sensible tips for avoiding cryptocurrency scams, like validating the credibleness of internet sites and ICOs, checking the name of exchanges and wallets, and being cautious of uninvited offers or requests. It may additionally discuss the importance of conducting analysis and seeking skilled recommendation before finance in cryptocurrency.

IX. the way to Safely Store and Secure Your Cryptocurrency

• kinds of cryptocurrency wallets: This section may give an outline of the various kinds of cryptocurrency wallets, like hardware wallets, computer code wallets, and paper wallets. It may additionally discuss the options and risks of every variety of case and supply steerage on the way to opt for the proper case for your desires.

• Best practices for firmly storing and managing your cryptocurrency: This section may give tips about the way to firmly store and manage your cryptocurrency, like victimization robust passwords, facultative two-factor authentication (2FA), and keeping your computer code up to this point. It may additionally discuss the importance of creating backups and being cautious of sharing personal data or access to your case with others.

• The risks of storing cryptocurrency on-line: This section may discuss the risks of storing cryptocurrency on online exchanges or wallets, like the potential for hacks or fraud. It may additionally give recommendation on the way to minimize these risks, like by employing a hardware case or keeping alittle quantity of cryptocurrency on-line for everyday use whereas storing the bulk of your coins in an exceedingly secure offline location.

X. The Role of Cryptocurrency in fashionable Finance and social science

• The role of cryptocurrency in ancient monetary systems: This section may explore the ways in which within which cryptocurrency is being integrated into ancient monetary systems, like through the employment of stablecoins or the adoption of blockchain-based payments by banks and monetary establishments. It may additionally discuss the potential edges and challenges of those developments.

• The potential for cryptocurrency to disrupt ancient finance: This section may discuss the ways in which within which cryptocurrency may disrupt ancient finance, like by reducing the requirement for intermediaries or facultative peer-to-peer transactions. It may additionally explore the potential implications of those disruptions for the monetary business and therefore the wider economy.

• The long run of cryptocurrency in finance and social science: This section may give insights on the long run of cryptocurrency in finance and economics, supported current trends and developments. It may additionally speculate on the potential semipermanent role of cryptocurrency within the world national economy and economy.

• The role of cryptocurrency in ancient monetary systems: This section may explore the ways in which within which cryptocurrency is being integrated into ancient monetary systems, like through the employment of stablecoins or the adoption of blockchain-based payments by banks and monetary establishments. It may additionally discuss the potential edges and challenges of those developments.

• The potential for cryptocurrency to disrupt ancient finance: This section may discuss the ways in which within which cryptocurrency may disrupt ancient finance, like by reducing the requirement for intermediaries or facultative peer-to-peer transactions. It may additionally explore the potential implications of those disruptions for the monetary business and therefore the wider economy.

• The long run of cryptocurrency in finance and social science: This section may give insights on the long run of cryptocurrency in finance and economics, supported current trends and developments. It may additionally speculate on the potential semipermanent role of cryptocurrency within the world national economy and economy.