Forbes magazine discusses two main problems with Bitcoin. Could Bitcoin really be an exchange of value with its cryptocurrency signals? Is the electricity consumed by Bitcoin overvalued? These two issues have been on our agenda for the past few days. The Forbes writer is looking for answers to these questions and the SafeTrading team is ready to see it through.
Could Bitcoin be a Medium of Exchange?
By the medium of exchange, it is meant that bitcoin can be used as a medium of exchange in the real economy, for example, in fiat currencies (such as dollars and euros). There are some requirements for assets used as a medium of exchange:
- They can be stored.
- Cannot be copied.
- Have a stable value
While Bitcoin satisfies many of these conditions, its stability is not very good. Bitcoin price reached almost USD$65,000 in April. At the time of this writing, it fluctuates in the range of 33-34 thousand dollars per hour. A 10% daily fluctuation is normal for Bitcoin.
For the above reason, it would be more logical to view Bitcoin as an investment instrument rather than a value exchange instrument. Among investment instruments, it is more realistic to name bitcoin among investment instruments of the Beta class. Investment instruments, prices of which fluctuate greatly, are priced in beta class.
Is the electricity consumed by Bitcoin overvalued?
According to the data reflected in some statistics, the annual cost of electricity in bitcoins is equivalent to the annual electricity consumption in countries such as Austria and Switzerland. The high cost of energy has caused and is causing a serious environmental reaction in the market. After these reactions, Tesla took a step back and canceled the Bitcoin payment system. Tesla cars can no longer be bought with bitcoins.
The energy cost of Bitcoin has led to the separation of the two giant companies. While Tesla Elon Musk finds the situation intolerable, Twitter and Square CEO Jack Dorsey argues that Bitcoin uses safe and clean energy. Bitcoin mining companies use reliable companies and renewable energy sources, Dorsey said.
The UFC is Preparing for a Cryptocurrency Partnership
The sports market’s interest in cryptocurrency signals is growing day by day. The UFC, which is described as an American mixed martial organization right after football and basketball, has also rolled up its sleeves. A 10-year agreement will emerge with the partnership, and when the cost of that agreement is taken into account, an incredible USD$175 million is revealed —as an analyst of SafeTrading says.
The agreement to be concluded with the cryptocurrency company has been identified as sponsorship and promotional activities. From now on, we will see more cryptocurrencies on billboards in the competitions that we will be watching. One of the most important features of this agreement is that it is the most expensive agreement ever made. A similar agreement had already been signed by football and basketball teams, but the figure was not that great.
The UFC is one of the most important organizations, followed by millions of sports fans around the world. The organization that brings together the best-mixed warfare seems to have long been mentioned in the agreement is signed.
What does the agreement include?
SafeTrading was not too surprised when they heard the name of the exchange. Following the signing of an agreement between Crypto.com, one of the world’s leading exchanges, and UFC, we will see this brand in UFC kits as well as athletes’ jerseys. Aside from being the greatest consensus in terms of numbers, we can see more clearly why this figure is so high when we look at her articles.
Not only the athletes’ jerseys but also the staff on the field and at the edge of the field will have uniforms bearing the name of the exchange. This is a great opportunity for Crypto.com to become part of one of the largest and most distinguished organizations in the world. This is one of the exchanges that makes the best use of this market and evaluates it in the best way.
Through this agreement, it will reach more investors in a short time and significantly increase brand awareness. The Comprehensive Agreement is one of the important events not only for the world of cryptocurrencies but also for the world of sports.
EIP-1559, which will revolutionize Ethereum, has been launched on all testnets
The Rinkeby test was run on an updated version of the Ethereum London Hardfork. All three testnets have successfully updated the London hard fork, according to Tim Beiko, a member of the Ethereum development team.
The above 3 testnets are:
- Ropsten.
- Goerli.
- Rinkeby.
All three tests were updated to the London hard fork on June 24th, June 30th, and July 8th, removing major obstacles to EIP-1559.
EIP-1559 has a feature that technically transforms Ethereum, especially mining fees and gas fees. As you know, Ethereum is moving its network from a PoW system to a PoS system. The PoW system does not meet the needs of the cryptocurrency market due to its high cost and cumbersomeness. We are now seeing blockchains with thousands of transactions per second. In order for Ethereum to compete with these blockchains, it had to abandon the PoW system. For this, the Ethereum 2.0 update was planned, which was released about 2 years ago.
In Ethereum 2.0, mining is changing dramatically. Miners no longer need hardware like sophisticated antminer. This equipment has come under heavy criticism due to its high energy costs. Entrepreneurs who want to mine in the PoS system are included by depositing 32 ETH per node. He starts mining with simpler devices. With 32 ETH per node, we will see millions of Ethereum leave the market.
Given that prices are determined according to supply and demand conditions, the narrowing of supply will have a positive impact on Ethereum prices.
