Litecoin Creator Charlie Lee Explains Why Most NFTs Are Not Valuable As People Think

Last Thursday (March 4), Litecoin creator Charlie Lee explained why most popular non-fungible tokens (NFTs) currently for sale are not as valuable as some people assume.

NFT marketplace OpenSea’s NFT Bible says NTFs are “unique, digital items with blockchain-managed ownership” and says that “examples include collectibles, game items, digital art, event tickets, domain names, and even ownership records for physical assets.”

Lee spelt out how he feels about NFTs via a tweetstorm posted on March 4.

He started by defining the term NFT:

Lee’s argument is that an NFT representing a song, a video clip, a photo, or some other digital image is nothing more than a digital certificate of authenticity, and although that certificate is “definitely worth something,” it is not as some might think since “the majority of the value of owning a collectible is lost by switching the ownership from the actual collectible to its certificate of authenticity.”

For example, in the case of NBA Top Shot, which is a marketplace for officially licensed digital collectibles, when you buy a moment NFT, what you are paying for is not a short video clip depicting a highlight from an NBA game (since such clips can be easily download for free) but the certificate of authenticity for that video clip.

To get an idea of how high prices on NBA Top Shot can get, there is currently (as of 21:40 UTC on March 7), a moment featuring a block by LeBron James during a Spurs-Lakes game (from the 2019-2020 season) that took place on 25 November 2019. Only 59 copies of this highlight were minted as NFTs, eight of which are currently listed for sale on the NBA Top Shot platform. The cheapest one is $99,999.00!

Want to be rich? Bitcoin’s limited supply cap means you only need 0.01 BTC

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Satoshi’s 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million

Satoshi’s 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million

On Sunday, March 7, 2021, the price per bitcoin jumped over the $50k handle once again, as the digital asset’s overall market capitalization is around $925 billion. One thing is for certain, there will never be more than 21 million bitcoin and today there’s roughly 18,647,525 bitcoin in circulation. Interestingly, anyone who owns 21 bitcoin or one-millionth of the entire supply is currently a millionaire today.

The ’21 Million Bitcoin Club’

Back in 2017, finance publications reported on a number of crypto proponents “gunning” for exclusive membership into the ’21 million club.’ The 21 million club refers to the number of bitcoins that will ever be produced and by the year 2140, that number will be 21 million BTC. During the last few years, many enthusiasts have tried to join the 21 million club by obtaining a single bitcoin, which is exchanging hands for a touch over $50k on Sunday morning.

For years now people can find a myriad of forum posts about people who have finally made it into the exclusive club of owners who hold a single bitcoin (BTC).

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million

“After almost [two] years in crypto, I finally got in,” an individual wrote on Reddit two years ago. “It might be small for most of you here, but for a person in a third world country, this is a huge accomplishment. Now, to focus on my [altcoins], then sell them for BTC at the most opportune moment. Wish me luck,” he added.

Members of the 21 million club who own a single BTC, also own precisely 0.0000047619% of the entire supply per owner. Then there’s another club of bitcoiners who have obtained approximately 21 BTC or 0.0000999999% of the entire capped bitcoin supply.

Today one-millionth of the bitcoin supply is now worth over 1 million U.S. dollars. One-millionth of the bitcoin supply is approximately 21 bitcoin. This week, is another instance of this occasion, as BTC prices dropped in value a few days ago after reaching an all-time high (ATH) at $58,354 on February 21.

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million
21 million club artwork published by cryptoart.com and drawn by artist Alix Branwyn.

Ten days prior to the bitcoin (BTC) price ATH, crypto writer Pete Rizzo tweeted “One-millionth of the bitcoin supply is now worth $1 million.” At the time of publication, 132,325 addresses hold anywhere between 10-100 BTC, and owners of one-millionth of the bitcoin supply are represented among this aggregate of addresses.

Besides the enthusiasts that want to simply join the 21 million club by owning a single coin, there are many who have been obsessed with joining the club of owners who own a millionth of the BTC supply.

“The 21 BTC club becomes more difficult to join,” explains a web portal dubbed “21-btc.club.”

Why Did Satoshi Choose the 21 Million Supply Cap?

The reasoning behind why Satoshi Nakamoto chose the 21 million supply limit may have been done purposely for a number of reasons. According to an email between Mike Hearn and Nakamoto, however, the Bitcoin network inventor chose the 21 million limit number so it would align with the M1 money supply of fiat currencies like the euro and U.S. dollar. Back in 2008, the M1 money supply was approximately 21 trillion when Nakamoto published the white paper.

“I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, that’s very hard. I ended up picking something in the middle,” Nakamoto said in the email to Hearn.

Satoshi Nakamoto added:

If Bitcoin remains a small niche, it’ll be worth less per unit than existing currencies. If you imagine it being used for some fraction of world commerce, then there’s only going to be 21 million coins for the whole world, so it would be worth much more per unit.

The white paper’s math also shows that the 21 million number further aligns perfectly with some of the interesting design patterns within the software. For instance, the 21 million number is integral to the block reward halving, alongside the 10-minute average time to mine a BTC block. Rewards are also cut in half every 210,000 blocks mined, and currently miners get 6.25 BTC per block.

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million
The total value of the Bitcoin network’s subsidy (bitcoin block rewards) can be expressed in the equation pictured above. Block reward epochs (210,000 blocks) will be chopped in half consistently until they end following approximately 32 Bitcoin reward halvings.

Interestingly, the smallest unit in the Bitcoin network is a single satoshi or 0.00000001 BTC. The Ph.D., Christian Seberino explained in 2018, that Satoshi likely chose the 21 million in order to “involve floating-point arithmetic.”

Satoshi's 21 Million Mystery: One-Millionth of the Bitcoin Supply Cap Is Now Worth $1 Million
Floating-point arithmetic.

Seberino says that even though BTC’s supply limit seems arbitrary, the reasoning behind why Satoshi chose the number is quite sound.

“It helps avoid errors on most computer systems, and is likely sufficient for all possible transactions everywhere,” Seberino emphasized. “Floating-point arithmetic is a type of mathematics used by computers to handle decimals. Decimals are often represented with 64 bits where one bit denotes the sign, 11 bits denote an exponent, and, 52 bits denote a fraction.”

The paper written by Seberino adds:

To avoid rounding errors, it is often a good idea to avoid integers that cannot be represented with only the fraction bits. To be extra safe, it may help to also leave one fraction bit unused. With respect to 64 bit decimals, that would limit integers to 51 bits. The maximum integer that can be represented with 51 bits is just slightly over 2100 trillion.

We honestly don’t have a solid answer to why Nakamoto chose the 21 million limit and he could have had insights into some numerological concepts we don’t know about. The 21 million clubs, whether it be holders of one single coin or 21 bitcoins total, will likely continue to grow over time and even change hands across generational wealth boundaries.

Furthermore, every time bitcoin (BTC) increases by $50k, then the holders of 21 BTC will see a wealth increase by another $1 million USD. Some would say it’s not too late to join the clubs, if they are interested in carrying wealth into the future.

What do you think about the 21 million bitcoin club and the reasons behind why Satoshi Nakamoto chose that number for the supply limit? Let us know what you think about this subject in the comments section below.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Cryptoart.com, Alix Branwyn, Christian Seberino,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Celsius Network valued at $3.1B following independent review

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Top 5 cryptocurrencies to watch this week: BTC, UNI, THETA, VET, LUNA

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HODLing early leads to relationship troubles? Redditors share their stories

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.

US House Representative Ro Khanna Lauds BTC Which ‘Cannot Be Devalued’- Calls for Less Carbon Intensive Mining

US House Representative Ro Khanna Lauds BTC Which ‘Cannot Be Devalued’- Calls for Less Carbon Intensive Mining

After Elizabeth Warren, the U.S. Senator for Massachusetts called bitcoin a speculative asset, Ro Khanna, the U.S. House Representative for California has spoken in favor of the crypto asset. In his Twitter statement, Khanna says “bitcoin just like digital gold cannot be devalued.”

US House Representative Ro Khanna Lauds BTC Which 'Cannot Be Devalued'- Calls for Less Carbon Intensive Mining

Khanna also lauds the crypto asset’s decentralization, an attribute which he says “promotes transnational exchange whilst providing a check against economic mismanagement.”

Awareness of the Concerns

In her recent comments about the crypto asset, Warren said she agreed with the U.S. Treasury Secretary, Janet Yellen’s contention that BTC is a speculative asset. Further, in a bit of apparent advice to cryptocurrency investors, Warren warns this is “going to end badly.” For her part, Yellen says BTC is extremely inefficient due to the crypto asset’s perceived disproportionate energy use.

Meanwhile, in his tweet, Khanna appears to be cognizant of the concerns that are often peddled by opponents of the leading crypto asset. Khanna said:

“Let us nurture it but protect consumers, prevent abuse, and invest in less carbon-intensive mining. That should happen in America.”

US House Representative Ro Khanna Lauds BTC Which 'Cannot Be Devalued'- Calls for Less Carbon Intensive Mining

Twitter Reaction

In the meantime, on Twitter, not many agree with Khanna’s pro-BTC comments. In many of their responses, Twitter users repeat the common attack points against BTC. For instance, one user known as August has added electronic waste to the crypto asset’s perceived energy waste. The user tweeted:

“Gfx cards that are typically used for the mining of crypto are bought and discarded much more quickly than they would otherwise be in their typical use cases.”

Another user, Forza Manchester City dismisses the crypto asset’s decentralization attribute. The user asserts that “decentralization of bitcoin is just in theory.” According to this user, BTC “will very likely always be controlled by a few major mining pools.” On Khanna’s contention that the crypto asset’s decentralization can provide a check against economic mismanagement, the user disagrees. Instead, he claims BTC decentralization only helps to “obfuscates movements of speculative actors.”

US House Representative Ro Khanna Lauds BTC Which 'Cannot Be Devalued'- Calls for Less Carbon Intensive Mining

Still, some Twitter users are applauding Khanna for trying to make a real change instead of “doing nothing.”

What are your thoughts on Ro Khanna’s remarks about BTC? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leading DeFi Protocol EasyFi Expands to Binance Smart Chain

The runaway success of Binance Smart Chain has helped propel the exchange’s utility token to the top of the crypto market top ten, and has attracted some of the industry’s top projects to the chain already.

The latest project to expand to Binance Smart Chain is leading DeFi protocol EasyFi. Here’s how this latest move by EasyFi Protocol will benefit crypto investors, the project, and the ecosystem itself.

EasyFi Protocol Integrates Binance Smart Chain Support

Although Ethereum remains the most dominant foundational blockchain layer in the crypto market today, like any emerging technology there are challenges and limitations that developers are rushing to address.

While Ethereum introduces scalability upgrades, DeFi applications, tokens, and stablecoins have begun to expand to additional chains, such as Polygon, or the ultra-hot Binance Smart Chain.

The latest project to expand to Binance Smart Chain, is EasyFi Protocol and the $EASY token. EasyFi Network is a universal second-layer lending protocol currently shaking up the DeFi space. The integration was done to create new opportunities with the DeFi sector, and enable faster, more efficient transactions. The added interoperability will benefit the ecosystem and investors alike.

EasyFi Protocol’s $EASY token will now be available as an ERC20 token, as well as a BEP20 token on three different chains: Ethereum, Polygon, and now Binance Smart Chain. All of the products and services offered by EasyFi’s Protocol V1 powered by Polygon Network on Ethereum, will also be available on the Binance Smart Chain integration.

How Binance Smart Chain Makes It $EASY #DoMoreWithDeFi

In addition to all of the speed and scalability benefits, EasyFi and $EASY will now have access to the Binance community for greater reach and engagement, and be part of the growing list of Binance digital assets.

Binance Smart Chain assets will be integrated into EasyFi as collateral, further enhancing lending markets. New money markets will also be introduced, such as tokenized stocks, metals and other commodities, and much more.

Binance Smart Chain is the ideal fit for EasyFi’s “do more with DeFi” mantra. Integrating within other chains was a primary part of EasyFi’s Q1 2021 roadmap. The first quarter roadmap also includes a refreshed EasyFi UI and UX, and multiple wallet integration for greater versatility for decentralized finance users.

To learn more about $EASY and EasyFi Protocol, check out the whitepaper. And for more info on Binance Smart Chain, check out the official primer on Binance Academy.

Bitcoin Surges Past $51K Thanks to U.S. Senate Passing $1.9T Covid Relief Bill

At 17:24 UTC on Saturday (March 6), U.S. Senate Majority Leader Chuck Schumer announced that Senate Democrats had just managed to get passed a $1.9 trillion COVID-19 relief bill (“American Rescue Plan”).

Moments later, Bitcoin started rally, and by 14:05 UTC on Sunday (March 7), on crypto exchange Bitstamp, the BTC price had reached $51,306, which is so far today’s intraday high. This means that the Bitcoin price is up 8.02% in the past 24-hour period and up 76.92% in the year-to-date period

According to data by CryptoCompare, currently (i.e. as of 13:40 UTC on March 7), Bitcoin is trading around $50,679, up 6.90% in the past 24-hour period and up 74.92% in the year-to-date period.

Anthony Pompliano (aka “Pomp”), a co-founder of crypto-focused asset management firm Morgan Creek Digital Assets, had this to say about what he thinks will be the effect of this huge fiscal stimulus bill finally getting passed by U.S. Congress:

According to a report by CNBC published yesterday, the U.S. House of Representatives, which is also controlled by Democrats, plans to pass this bill on Tuesday (March 9), after which it will be sent to U.S. President Joe Biden, so that he can sign it (before “a March 14 deadline to renew unemployment aid programs”) and make it into law. The report went on to say that this legislation “includes direct payments of up to $1,400 to most Americans, a $300 weekly boost to jobless benefits into September and an expansion of the child tax credit for one year.”

House Speaker Nancy Pelosi made the following statement in a press release issued yesterday:

Today is a day of great progress and promise for the American people, as the Democratic Senate has passed President Biden’s American Rescue Plan to save lives and livelihoods.  The House now hopes to have a bipartisan vote on this life-saving legislation and urges Republicans to join us in recognition of the devastating reality of this vicious virus and economic crisis and of the need for decisive action.

The American Rescue Plan takes a tremendous step forward to defeat the virus and provide relief to families and small businesses in need.  It honors our heroes – our health care workers, food, sanitation and transportation workers, and teachers – who are on the frontlines on the state and local level.  It crushes the virus with the equitable and immediate distribution of the vaccine.  And it puts our children safely back in school and puts workers back on the job.  Overall, this coronavirus-centric legislation puts nearly a trillion dollars in the pockets of America’s families.

In other good news, yesterday, during a TV interview, India’s Finance Minister Nirmala Sitharaman suggested that the Indian government may be more open-minded to the idea of “private” cryptocurrencies than had previously been thought (after an anonymous Senior Finance Ministry official told Bloomberg in February that an upcoming new law would ban all cryptoassets).

According to a report by Cointelegraph, Sitharaman said:

Yes, a lot of negotiations, discussions are happening, with Reserve Bank. Obviously the Reserve Bank will be taking a quorum on how, what kind of unofficial currency, cryptocurrency will have to be planned, and how it has to be regulated. But also, we want to make sure that there’s a window available for all kinds of experiments which will have to take place in the crypto world.

Featured Image by “makeitsomarketing” via Pixabay.com

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Former Prudential CEO Calls Crypto an ‘Attractive’ Addition to Any Investment Portfolio

The former chief executive officer of Prudential-Bache Securities says cryptocurrencies represent a good addition to any investment portfolio. 

Speaking in an interview with Yahoo Finance, Wall Street veteran George Ball called cryptoassets an “attractive” consideration for the investing public. He claimed most of the investment community was rightly concerned over the actions by the Fed, including the proposal for another $1.9 trillion stimulus package. 

Ball said:

The investing public right now is worried—and the professional investors are worried—that the Fed is behind the curve. That the amount of stimulus envisioned is perhaps greater than that which would be helpful over the next year or two to the economy.

Ball predicted an “extremely vigorous” market rebound occurring in late 2021, saying most investors were trapped with the possibility of a short-term correction or long-term inflation. He noted bitcoin served as a potential hedge against both scenarios. 

He explained:

The best hedge against an at-risk market is cash. Cash lets you sleep securely at night and take greater risks with the investments you do make. With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part—small part—of almost any portfolio. 

Featured Image Credit: Photo via Pixabay.com

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.