Belarus’ Largest Bank Launches Cryptocurrency Exchange Service

The largest bank in Belarus, Belarusbank, has reportedly begun providing a cryptocurrency exchange service, allowing customers to buy bitcoin using Visa cards.

Belarusbank’s new cryptocurrency exchange service is in collaboration with bitcoin exchange service provider Whitebird, several local news outlets reported Thursday. The bank revealed its plans to create a cryptocurrency exchange platform early last year.

Founded in 1991, Belarusbank merged with Sberbank of Belarus in 1995. The government of Belarus owns 99.95% of the bank’s capital. In 2018, the bank entered into a strategic partnership with Whitebird, a resident of Belarus’ Hi-Tech Park, which is also known as the Silicon Valley of Eastern Europe. Whitebird operates under Belarus’ legal framework and in accordance with Decree No. 8 of the President of the Republic of Belarus “On the development of the digital economy” and related decisions of the supervisory board of the Hi-Tech Park.

“This is a service that allows you to quickly buy or sell bitcoin (BTC) for USD [U.S. dollars], RUB [Russian rubles], BYN [Belarusian rubles] at the optimal rate at the time of the transaction,” Whitebird’s website details, adding that “The service works online” and “the purchase and sale procedure takes place using Visa payment cards.” Belarusbank plans to add buying bitcoin with euros in the future.

Initially, the bank’s new cryptocurrency service is available to citizens of Belarus and Russia, local media conveyed, citing the press service of the bank. In the future, Belarusbank plans to extend the crypto service to customers in other countries. The bank also plans to collaborate further with Whitebird to support more cryptocurrencies and provide additional related services.

What do you think about Belarusbank offering a crypto exchange service? Let us know in the comments section below.

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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.

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Valve is ending support for Steam purchases made with bitcoin, the company said today, citing “high fees and volatility” in the value of the cryptocurrency.

“In the past few months we’ve seen an increase in the volatility in the value of Bitcoin and a significant increase in the fees to process transactions on the Bitcoin network,” Valve said in a post on Steam. “For example, transaction fees that are charged to the customer by the Bitcoin network have skyrocketed this year, topping out at close to $20 a transaction last week (compared to roughly $0.20 when we initially enabled Bitcoin). Unfortunately, Valve has no control over the amount of the fee. These fees result in unreasonably high costs for purchasing games when paying with Bitcoin. The high transaction fees cause even greater problems when the value of Bitcoin itself drops dramatically.”

Valve said that the degree of volatility in bitcoin value “has become extreme in the last few months, losing as much as 25% in value over a period of days.” The open source cryptocurrency reached new highs this week, reaching a value of $12,000 per bitcoin today, jumping $1,000 in just 24 hours.

Valve explained why surges like that can have an impact on purchases through Steam.

“When checking out on Steam, a customer will transfer x amount of Bitcoin for the cost of the game, plus y amount of Bitcoin to cover the transaction fee charged by the Bitcoin network,” the company said. “The value of Bitcoin is only guaranteed for a certain period of time so if the transaction doesn’t complete within that window of time, then the amount of Bitcoin needed to cover the transaction can change. The amount it can change has been increasing recently to a point where it can be significantly different.”

Valve said that those price discrepancies will normally result in a refund or an additional payment from the customer when more traditional, more stable currencies are involved. But in the case of bitcoin, high transaction fees can make those resolutions costly.

“At this point, it has become untenable to support Bitcoin as a payment option,” Valve said. “We may re-evaluate whether Bitcoin makes sense for us and for the Steam community at a later date.”

Valve added support for Steam purchases with bitcoin in 2016 as part of a partnership with company Bitpay.

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bitcoin

Update: Bitcoin has continued to soar intraday – now topping $9,300 – with a total market cap over $156 billion, leaving the cryptocurrency worth more than Merck, Disney, and GE.

(ZH)Coinivore notes that the digital currency, once a toy for computer nerds, is now soaring in price, triggering a new gold rush. Is it just another bubble, or a glimpse into a radically different financial future?

As Rick Falkvinge, CEO of BitCoin Cash and founder of the Swedish Pirate Party, warns “bitcoin is an extinction-level event for banks” and probably governments too…

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As we detailed earlier, less than 24 hours ago, we noted that Bitcoin had broken above the recent resistance level around $8,300 and hit a fresh all time high of $8,650, observing that the world’s biggest cryptocurrency by market cap is now rising at a pace that has put the $10,000 price target by both Mike Novogratz (and Jose Canseco) firmly in its sights. It didn’t take long however for bitcoin to find a new round of eager buyers, and in early Asian trading, a burst of buying out of Korea’s Bithumb exchange, has sent bitcoin surging another several hundred dollars higher, and around midnight ET bitcoin had surpassed $9,000, sending its market cap to $150 billion, making it more valuable than corporations like Siemens, Mastercard or McDonald’s.

The sharp gains come as the combined market capitalization for all cryptocurrencies also peaks at new highs – currently standing at just shy of $300 billion.

At this rate of appreciation, the crypto may hit the key psychological level of $10,000 in under a week. Needless to say, the long term chart is about as exponential as it gets, so as usual, buyer beware.

READ MORE: Amid Stock Market Panic, Dozens of Chinese Billionaires Are Mysteriously Disappearing

Bitcoin started the year just above $1,000, and the YTD gain is now over 900%, which however pales in comparison to Ether’s nearly 5,000% YTD return and Litecoin’s 20x.

However, it’s not just Asian demand as CoinTelegraph reports that in a sign of growing mainstream acceptance, digital currency exchange  now boasts more accounts than brokerage firm Charles Schwab.

image courtesy of CoinTelegraph

According to its website, Coinbase has 13 mln users while the number of Schwab brokerage accounts stood at 10.6 mln as of the end of 2016. These numbers don’t paint a complete picture, since the amount of assets controlled by Schwab certainly vastly exceeds those of Coinbase users. Nevertheless, the actual number of users indicates a massive volume of adoption, as the public begins to dabble in cryptocurrencies. Coinbase user numbers have grown by 167% this year.

One month ago, Mike Novogratz was the first to predict a $10,000 price in 6 to 10 months. It may come in that many weeks instead.  As a store of value, Novogratz likened bitcoin to digital gold, and said the technology is beginning to make “more and more sense” as we move increasingly into the digital. Novogratz continued to say that, while bitcoin is a bubble, the mania is justified, because it is a technological advancement that promises to fundamentally alter our lives.

“I can hear the herd coming” Novogratz said.

And bubble or not, Novogratz concluded eloquently on the extreme nature of cryptocurrencies’ potential.

“Remember, bubbles happen around things that fundamentally change the way we live,” he said. “The railroad bubble. Railroads really fundamentally changed the way we lived. The internet bubble changed the way we live. When I look forward five, 10 years, the possibilities really get your animal spirits going.”

Bitcoin is set to become “the biggest bubble of our time,” he added, and could reach $10,000 very soon due to fast-building interest. In retrospect, he may be right much faster than even he anticipated.

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More than a decade ago, on the heels of the 2008 financial crisis (and during the nascent stages of Bitcoin), Dalio began studying the rise and fall of the three most recent global reserve currencies: the Dutch guilder, the British pound, and the U.S. dollar, he recounted.

As Dalio sees it, currency supremacy moves in three “cycles” that may occur simultaneously: the creation of debt and financial assets; an “internal cohesiveness clash cycle” (“as the wealth gaps grow and the value gaps grow – and political groups grow – you have a greater amount of conflict”); and the rise of another great power to challenge the existing top currency. 

That happened to the U.S. once before, Dalio noted. After the 1944 Bretton Woods agreement, global exchange rates were tied to the dollar which, in turn, was backed by gold. However, in the 1960s federal spending skyrocketed due to an expansion of entitlement programs at the same time the U.S. was boosting its defense spending to battle the Soviets in the Cold War as well as pay the escalating costs of the Vietnam War.

The higher debt eventually caused a depletion of America’s gold reserves from about 20 metric tons in the late 1950s to under 10 metric tons by 1970. Sensing the situation was no longer tenable, President Richard Nixon took the U.S. off the gold standard in 1971. The dollar has been a “fiat” currency ever since.

As governments around the world continue their attempts to stave off economic crises with more spending, much has been made about the prospects of inflation. In the 12 months ending April, the annualized inflation rate for the U.S. was 4.2%, well higher than the Federal Reserve’s 2% long-term target, though a large part of that was because the rate is being compared to April 2020, a month where many of the world’s economies ground to a halt.

“We will have a hell of a lot of demand because we put all that money in cash all over the place,” said Dalio. At the same time as the money supply has increased, yields have fallen to lows as investors snap up bonds and other assets such as real estate. 

It is that second, monetary type of inflation that will ultimately hold sway, according to Dalio. That could be good for assets such as real estate, stocks and cryptocurrencies, but only up to a point.

“As those prices rise – like a bond – their future expected returns go down,” he said. “As they come closer to the interest rate … then there’s no longer the incentive to buy those things. And you could have trouble. It becomes very difficult to tighten monetary policy, because the whole thing falls apart. Everything’s interest rate-sensitive.”

“In 2015, only 2% of Chinese markets were open to foreigners. Now it’s over 60% [but] if you look at the relative pricing, and so on, it’s a whole different story because they’re not doing quantitative easing,” he said. “They still have an attractive bond market. They have attractive capital markets that are more open. And as they’re more open, big investors – institutional investors, central banks, and so on – view themselves as underweighted there,” meaning their holdings in China are insufficient, relative to the returns they can generate. 

“When you buy a Chinese financial asset, like buying an American financial asset, you have to buy their currency. So it’s supportive to their currency and it’s also supportive to their assets,” said Dalio. He said China gains the capacity to bill and lend in its currency when there are capital inflows. “China has been very reticent to do that [so as] not to disrupt the system. But you’re seeing more of the internationalization of the renminbi. It has appeal for borrowers and lenders. … That dynamic is really following the same arc of monetary systems and empires pattern.”

Governments may start to worry should bondholders sell their bonds in favor of bitcoin. “The more we create savings in [bitcoin], the more you might say, ‘I’d rather have bitcoin than the bond.’ Personally, I’d rather have bitcoin than a bond,” Dalio said, chuckling. “And then the more that happens, then it goes into bitcoin and it doesn’t go into credit, then [governments] lose control of that.” 

One indicator, Dalio said, is the relative value of bitcoin versus gold. Excluding government reserves and jewelry uses, the value of gold is roughly $5 trillion, he estimated, about five times that of bitcoin. “It’s about 80/20 right now in the world, so that’s something I’d watch, too. But I think those things probably are going to rise relative to bonds.”

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Bill Maher detested this year’s Oscars, from the films — especially Best Picture — to last Sunday’s low-rated telecast that he said “dared you to be entertained.”
“It used to get Super Bowl numbers,” said the host of Real Time With Bill Maher Friday. It’s like the winner who thanks everyone, says ‘Go to bed kids’ — and the babysitter texts back, ‘They already did.’”
“No jokes, no songs, not even any clips of when we used to have fun,” he said.
Mincing no words, his New Rules segment pitched Nomadland — the series. “Move over That Girl, Mary Tyler Moore and Alice. There’s a new girl in town and she’s sh-tting in a bucket,” he said. “We loves that she drifts around in a van, but can she be 19 and hot? Maybe give her a different supporting cast. A handsome guy, a funny guy, a lesbian best friend and a dog? They can solve mysteries. Call me,”
His full ire, however, was directed elsewhere. “Nothing with ‘crypto’ in the title ever turned out good. There is a mania rising in the nation these days.” He mocked cryptocurrencies as pointless, arbitrary, impossible to understandable, a Ponzi scheme, a game and a massive drain on the planet’s energy. Bitcoins are created through a process called “mining” that uses massive supercomputing power and he said backers like Tesla CEO Elon Musk who care about the climate should know better.
“I fully understand that our financial system isn’t perfect, but at least it’s real. Apple stock is worth money because Apple makes thousand dollar phones that everyone buys and drops in the toilet.”
Capitalism does let you “make money in the existing field of money. But we knew money had to originate from and be generated by something real, somewhere. To which cryptocurrency says, ‘No, it doesn’t.’”
“Nothing is ever actually being accomplished and no actual product made or service rendered. It’s like Tinker Bell’s light. Its power source is based solely on enough children believing in it,” he said. “Our problem is not economic but psychological. People who have been raised in a virtual world are starting to believe they can really live in it.”
Otherwise the comedian was pretty pleased with the state of things, mainly Joe Biden, his speech before Congress on Wednesday and his solid polls that are driving Fox News nuts. To keep its base fired up, he said, the network had to resort to headlines claiming Biden plans to cut 90% of red meat from Americans’ diets — one burger a month — and to cancel Fourth of July.
That was last week. He offered Fox a few new headlines for the week ahead: “Trump border wall to be melted down for giant statue of Colin Kaepernick”; “Fauci: Babies in the womb must wear masks”’ and, “In all depictions of Jesus, the Crown of Thorns to be replaced by a P-ssy Hat.”
See crypto-rant here.

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Demand for Crypto Soars: Bitcoin Funds Break Records, Goldman Sachs Wants In

Investors are increasingly seeking exposure to bitcoin following the recent months-long price rally. Bitcoin exchange-traded products are seeing record trading volumes. Meanwhile, more big banks are reportedly trying to get into the crypto space, including Goldman Sachs.

High Demand for Bitcoin and Crypto Products

With the price of bitcoin rapidly rising over recent months, more investors are seeking exposure to the cryptocurrency. The price of bitcoin rose about 24% since the beginning of the year and over 90% since the beginning of December.

One bitcoin exchange-traded product in particular, BTCE, has recorded an average daily trading volume of $69 million in the first 11 days of January, the Financial Times reported Friday, citing data from Deutsche Börse where it is trading. This week, Switzerland’s principal stock exchange revealed that its crypto trading volume hit a record high of $1.2 billion in 2020. The exchange now lists 34 crypto exchange-traded products.

Grayscale Investments’ Bitcoin Trust posted an average daily turnover of almost $1 billion in the first two weeks of this year, which is more than nine times the average in 2020, the publication added. The bitcoin trust’s assets under management grew from $1.8 billion to $17.5 billion during the year.

Meanwhile, Canadian asset manager 3iq says its bitcoin fund has reached a milestone, exceeding one billion Canadian dollars ($785 million) in assets under management. Besides the bitcoin fund, the company offers the ether fund and a global crypto-asset fund.

Big Banks Want In, Including Goldman Sachs

As bitcoin continues to outperform other assets, more major companies are seeking to get into the crypto space. Goldman Sachs’ global head of commodities research, Jeff Currie, said last week that the bitcoin market “is beginning to become more mature” after he called BTC “a retail inflation hedge.” The investment bank is now rumored to be have issued a request for information (RFI) to explore providing digital asset custody service.

The RFI was reportedly sent to a prominent company in the crypto custody niche at the end of last year. An unnamed Goldman Sachs source indicated that the firm is talking to several companies with a focus on custody service.

Recently, the U.S. Office of the Comptroller of the Currency (OCC) granted Anchorage conditional approval to become a national digital bank. Anchorage co-founder Diogo Mónica told CNBC last week that the regulatory approval will attract many large institutional players to begin offering their own crypto services, including custody.

Other banks and financial services giants that have recently entered the crypto space include Spain’s second-largest bank BBVA, Standard Chartered Bank, Southeast Asia’s largest bank DBS, and Italian insurance giant Generali. Some of them offer only crypto custody services while others also offer bitcoin trading services.

What do you think about the rising demand for crypto? Let us know in the comments section below.

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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.

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In Case You Missed It

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Summary List Placement

  • Bitcoin rose above $18,000 on Wednesday, to its highest in three years, and its market capitalization has hit an all-time record of $336 billion.
  • The price has closed above $17,000 on only five other days in history, Deutsche Bank analysts said.
  • Frenzy over its price caught the attention of Hollywood celebrity Maisie Williams, who ran a Twitter poll Tuesday on whether she should buy Bitcoin.
  • Events triggering Bitcoin’s price surge include improvement in mainstream acceptance and President-elect Joe Biden appointing crypto-friendly Gary Gensler to oversee Wall Street regulations, an OANDA analyst said.

Bitcoin exploded above $18,000 on Wednesday, taking its market capitalization to an all-time high.

The price of the digital token surged 2.5% to $18,147 around 6:15 a.m. ET, and its price is up about 154% year-to-date. Bitcoin recorded its highest price ever in December 2017, hitting $19,783.

The digital asset’s market capitalization has hit a new high of $336 billion, eclipsing its previous record of $328 billion set in late 2017, according to data from Coin Gecko.

Bitcoin has closed above $17,000 for only five other days in history, according to Deutsche Bank analysts.

The currency’s latest surge began in October after PayPal announced it would allow its users to buy, sell, and hold the token. Crypto bulls said it was only a matter of time before other major firms adopt its use. The frenzy even led to “Game of Thrones” star Maisie Williams recently taking a poll on Twitter on whether she should buy Bitcoin.

The billionaire investor Mike Novogratz responded, saying he expected its price to first hit $20,000 before getting to $65,000 because of a “network effect” in which there were a ton of new buyers and low supply. “So YES, buy it,” he said.

JPMorgan shares 35 European stocks across 10 sectors that you need to own in the rotation to value — including one that could see EPS growth of almost 700% next year

But some seem to think this might just be a bubble, and its price could crash at some point.

“It’s surely only a matter of time until a new high is achieved,” said Craig Erlam, a senior market analyst at OANDA Europe. “Although there’s something about the immense gains of the last month that make me a little nervous, given past experience.” 

The price of Bitcoin has risen by more than a third so far in November. Since the start of October, it’s gained around 70%.

Many analysts, including Erlam, expect the price to top $20,000, with some expecting even higher levels.

Bitcoin is now “ready to retest its all-time high and possibly move above $20k,” said Ian Balina, CEO of AI-driven cryptocurrency research firm Token Metrics. “That is well within means for BTC as the global economic climate is perfect for bitcoin to launch to new heights.”

Bitcoin seems to have everything going right for it, according to Edward Moya, another senior analyst at OANDA. That’s largely because mainstream acceptance is improving, President-elect Biden appointed Gary Gensler, someone viewed as friendly towards cryptocurrencies, to oversee Wall Street Regulations, and steady institutional interest, he pointed out. 

GOLDMAN SACHS: Buy these 20 deeply underpriced stocks now before the recovery helps them rebound and crush Wall Street’s low expectations in 2021

SEE ALSO: Legendary investor Howard Marks warns against chasing the vaccine rally as opportunities to buy distressed assets are drying up

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Summary List Placement

  • Bitcoin surged more than 3% on Tuesday as it approached a key resistance level at $14,000.
  • Recent positive developments for the digital cryptocurrency include PayPal allowing its account holders to buy, sell, and transfer bitcoin, as well as Square’s bitcoin purchase worth $50 million.
  • If bitcoin is able to decisively trade above the $14,000 level, the next level of resistance traders will watch is its all-time high near $20,000.
  • Visit Business Insider’s homepage for more stories.

Bitcoin surged more than 3% on Tuesday to $13,480, putting the digital currency within striking distance of its June 2019 high of $13,880.

If bitcoin does surpass $13,880, it would reach its highest level in almost three years.

The cryptocurrency has benefited from a stream of positive headlines over the past week. Square said it furthered its investment in bitcoin by purchasing $50 million worth of the digital coin in a single day without disrupting the market.

Shortly after Square’s announcement, PayPal said it would enable its account holders the ability to buy, sell, and transfer bitcoin, lending credibility to the crypto asset.

Institutional investors are starting to take notice. JPMorgan said last week that bitcoin looks attractive as it competes with gold as an “alternative” currency. The firm noted that millennial investors favor bitcoin over physical gold.

JPMorgan said it believes bitcoin could double or triple from current levels and would have to surge 10x to match the value of all the physical gold in the world.

Read more:BANK OF AMERICA: Buy these 11 underowned stocks ahead of their earnings reports because they’re the most likely candidates to beat expectations in the weeks ahead

“Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the bitcoin price,” JPMorgan said.

With bitcoin on the rise, the technicals are coming into focus as it pushes up against the last major resistance level before its all-time high around $20,000. 

That level is $14,000, just 4% above bitcoin’s current price as of Tuesday afternoon. 

“Bitcoin has seen short term momentum improve within its long term uptrend and has a good amount of room to resistance, which is close to about $14,000,” Fairlead Strategies founder Katie Stockton said in a note last week.

If bitcoin is able to decisively trade above its $14,000 resistance level, all eyes will be on its next, and last, remaining resistance level: $20,000. A break above that level would set the cryptocurrency up for new all-time highs. 

Year-to-date, bitcoin is up 87%, yet is still 32% below its 2017 high of $19,783, according to data from Coindesk.

Read more:‘I’m basically going to be long growth’: Billionaire investor Chamath Palihapitiya has hauled in a 997% return since 2011. He details the 5 sectors shaping his long-term investment playbook.

Join the conversation about this story »

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Russia Putin

A Russian university lecturer with ties to the government says the Kremlin will soon begin investing massively in Bitcoin as a way of avoiding new U.S. sanctions, a move that could happen “in a matter of weeks.”


Russia to Buy Some ‘Digital Gold’?

Speaking exclusively to Micky, Vladislav Ginko of the Russian Presidential Academy of National Economy and Public Administration believes new U.S. sanctions will push the Kremlin into diversifying its cash reserves into Bitcoin.

Ginko who has ties with the government going back more than 20 years says the move will happen in a matter of weeks. Ginko has in recent times appeared on various Russian media platforms clamoring for the adoption of Bitcoin as a haven asset.

Commenting on the issue, Ginko said:

US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future).

Cutting Dollar Dependence Amid New U.S. Sanctions

Along with China, Iran, and Venezuela, Russia is exploring ways to reduce its US Dollar dependence. Back in November 2018, Russian President; Vladimir Putin, declared that in the wake of new sanctions, the country had no choice but to cut down on its use of the Dollar in international trade.

At the time, President Putin said:

We have no goal of moving away from the Dollar. It’s the dollar that’s moving away from us. Those making such decisions are not shooting themselves in the foot, but somewhere more delicate, further up the body.

According to Ginko, the Kremlin will, beginning in February 2018, look for ways to diversify its reserves. Ginko has in recent times appeared on various Russian media platforms clamoring for the adoption of Bitcoin as a haven asset.

If the Russian government and the elite class invest massively in Bitcoin, the price of the asset could experience a sudden upward surge. Such a situation occurred in 2018 when wealthy Chinese citizens reportedly moved money into BTC in the wake of an accelerated currency devaluation by Beijing.

Meanwhile, the Kremlin has been stocking up on non-digital gold as a shield against economic sanctions. Reports indicate the government is selling U.S. government debt in exchange for the precious metal. By August 2018, Russia had already tripled its gold reserve as it gears up for renewed economic tussles with the U.S.

Such is the extent of Russia’s gold-gobbling that global gold purchasing figures reached a three-year high in November 2018. The Kremlin is also pursuing closer economic ties with China to create a new payment system independent of the Dollar.

Will massive Bitcoin investment by the Kremlin lead to any surge in the price of Bitcoin? Let us know your thoughts in the comments below.


Image courtesy of Shutterstock

The post Russia Plans to Ditch US Dollar for Bitcoin, Says University Professor appeared first on Bitcoinist.com.

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$8M Worth of ‘Sleeping’ Bitcoin Rewards from 2010 Moved the Day Before ‘Black Thursday’

Over a half a million dollars worth of bitcoin from a May 2010 coinbase reward was transferred to Bitfinex on October 1. A parser recorded the old coins being spent and since mid-February 2020, roughly 33 so-called ‘sleeping bitcoin addresses’ from ten years ago have been spent to-date. Interestingly, 20 out of the 33, 2010-issued rewards moved this year were spent the day before ‘Black Thursday.’

Earlier this week, the software program, Btcparser, recorded an old coinbase reward from 2010 getting spent on Thursday, after the 50 bitcoins sat dormant for over a decade. Btcparser is a Telegram and browser bot that was developed in order to monitor the “activity of so-called sleeping bitcoin addresses.”

Btcparser.com shows three types of parsed data obtained from the Bitcoin (BTC) blockchain. The first parser combs the BTC blockchain for activity related to 64,529 addresses stemming from 2009 through 2017.

Btcparser’s Telegram channel shows these alleged dead addresses have been recorded since February 13, 2020. A great majority of rewards spent in 2020 on Btcparser’s first list were minted in 2017, 2016, and 2015.

Blocks stemming from 2011, 2012, 2013, and 2014 are rarely spent but have been recorded on a few occasions this year. From mid-February 2020 until today, 33 blocks with 50 BTC coinbase rewards from 2010 were moved after a whole decade. Another block reward from 2009 was also spent this year as well. That’s a total of 1,650 BTC (34 block rewards) worth over $17 million using today’s exchange rates.

The last 2010 block of coins moved was transferred on October 1, 2020, and it was allegedly sent to a Bitfinex hot wallet. The 2010 block spent last Thursday was originally minted on May 24, 2010, when bitcoin was practically worthless. For instance, the block’s creation was a week after Laszlo Hanyecz successfully traded 10,000 BTC for two pizzas.

The last group of bitcoins that were moved stemming from 2010, prior to the October 1st transfer, was on September 22, and September 2, 2020. Those 100 old bitcoins (over $1M in value) were issued on September 16, and October 6, 2010.

Out of the total 33, 2010-based block rewards moved this year since mid-February, a single 2009 block reward was transferred on May 20, 2020. This block moved made headlines in the media because it was mined only a month after the BTC network was first invoked.

However, one story that didn’t make headlines was the massive 20 block rewards (50 BTC) transferred on March 11, 2020, the day before ‘Black Thursday.’ March 12 or Black Thursday saw crypto markets decline significantly in value, as bitcoin BTC prices slid -49% from $7,648 to a low of $3,870.

Additionally, another 2010 block reward, coincidentally mined on March 11 of that year, was also transferred on Black Thursday. It is uncertain whether or not the mined blocks from 2010 that were moved in mid-March were mined by a single entity, but it’s likely that it was the same person.

Furthermore, the BTC minted in 2010 spent the day before Black Thursday also saw it’s corresponding BCH moved on the same day. The BCH spent was worth $271k using bitcoin cash exchange rates on March 11, 2020. Moreover, the corresponding bitcoinsv (BSV) coins tied to these block rewards were also spent.

For some reason before the market carnage on March 12, the 1,050 BTC stemming from numerous 2010 block rewards were possibly sold at the top for $8 million. It’s quite possible that the owner of those Satoshi-era bitcoins knew the market would see a big sell-off the next day.

There are a lot of Satoshi-era or so-called sleeping bitcoins that never have moved. Estimates assume there are close to 1.8 million bitcoins from old coinbase rewards left unspent that are sitting dormant in wallets.

There were 67,920 BTC blocks solved in 2010 with the first block of the year mined at height 32,490. Bitcoin blocks that were mined prior to block height 79,764 were also mined into a single payout address. Blocks mined prior to block height 135,000 saw rewards sent to unencrypted wallets as well. Wallet encryption wasn’t officially added to BTC wallet software until July 2011.

It’s quite interesting that the miner spent the decade-old bitcoins worth around $527k on October 1, 2020. But what’s even more intriguing is the 20 or so 2010-based BTC, BCH, and BSV blocks spent before Black Thursday.

What do you think about the 2010 block spent on October 1 and the 20 blocks spent in mid-March? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Btcparser.com

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