Since mid-March, when the COVID-19 pandemic began to upend global markets, investors have been fleeing to the relative safety of digital assets like Bitcoin. The leading cryptocurrency has seen its price surge more than 60% since late March, as investors seek refuge from the economic uncertainty caused by the pandemic.

But there’s one corner of the Bitcoin market that’s been lagging behind the rest: Grayscale’s Bitcoin Trust (GBTC). This publicly traded investment vehicle allows investors to gain exposure to Bitcoin without having to actually purchase and hold the digital currency themselves.

However, GBTC has been trading at a significant discount to its net asset value (NAV) for months now. As of June 8, 2020, GBTC was trading at a 9.8% discount to its NAV of $9.02 per share.

That means that if you were to buy one share of GBTC today, you’d be paying $8.12 for each dollar worth of Bitcoin that the trust holds.

So why is GBTC trading at such a discount? There are a few potential explanations.

First, it’s important to understand how GBTC is structured. The trust holds a certain amount of Bitcoin, and each share represents a fraction of those holdings.

When investors want to buy GBTC, they’re actually buying shares of this trust.

The trust then uses this money to buy more Bitcoin. However, because GBTC is structured as an investment vehicle, it incurs expenses like management fees and other costs.

These expenses eat into the trust’s profits, and they also reduce the amount of Bitcoin that each share represents.

When it comes to Bitcoin, the answer to the question “why is Bitcoin so expensive?” can be pretty difficult to pin down. After all, its price has been incredibly volatile over the years, making it hard to really know what’s driving its value at any given moment.

However, there are a few key factors that seem to be playing a role in Bitcoin’s current high price.

One of the most important factors is simply demand. As more and more people become interested in Bitcoin and start buying it, the price will naturally go up.

This is especially true given that there is a limited supply of Bitcoin – there will only ever be 21 million Bitcoins in existence. So as demand increases, the price will continue to rise.

Another key factor is the increasing use of Bitcoin for mainstream transactions. While originally Bitcoin was largely used as an investment or speculative tool, nowadays it’s being used more and more as a currency for everyday purchases.

This is thanks to the growing number of businesses that accept Bitcoin as payment, including major companies like Microsoft and Expedia. As Bitcoin becomes more widely accepted, its value will likely continue to increase.

Finally, it’s worth noting that geopolitical factors can also play a role in Bitcoin’s price. For example, when there is unrest in traditional financial markets, investors often look to alternative investments like Bitcoin as a safe haven.

This can lead to an influx of money into Bitcoin, driving up its price.

So why is Bitcoin so expensive? Ultimately, it comes down to a combination of demand, mainstream adoption, and geopolitical factors. All of these things are likely to continue playing a role in Bitcoin’s price movements in the future, so we can expect its value to remain volatile.

Bitcoin is often touted as a green alternative to traditional fiat currencies, but the truth is that Bitcoin is not environmentally friendly at all. The Bitcoin network consumes a massive amount of energy, and it is estimated that each Bitcoin transaction requires the same amount of energy as powering 2.

5 homes for a day.

The vast majority of this energy consumption comes from the mining process, which is how new Bitcoins are created. Miners use powerful computers to solve complex mathematical problems, and they are rewarded with Bitcoin for their efforts.

However, the amount of energy required to power these computers is staggering.

It is estimated that the Bitcoin network consumes about as much energy as the entire country of Ireland. And it is only going to get worse as the network grows.

Unless something changes, it is estimated that the Bitcoin network will consume more energy than the entire world by 2020.

So why is Bitcoin so inefficient? The main reason is that the mining process is intentionally designed to be resource-intensive. The more miners there are, the more difficult the math problems become, and the more energy is required to solve them.

This is done to ensure that new Bitcoins are released at a steady rate, and it also makes it more difficult for someone to control the Bitcoin network by controlling a large number of miners.

However, there are some potential solutions to this problem. One idea is to move away from Proof-of-Work, which is the current system used by Bitcoin, and move to a Proof-of-Stake system.

Under Proof-of-Stake, miners would be chosen randomly from all of the people holding Bitcoin, and they would only need to run a light weight computer program to validate transactions. This would drastically reduce the amount of energy consumed by the Bitcoin network.

Another solution is to simply use less energy-intensive cryptocurrencies such as Monero or Ethereum. These cryptocurrencies use different mining algorithms that are less resource-intensive than Bitcoin’s algorithm.

Ultimately, whether or not Bitcoin is environmentally friendly depends on how it is used in the future. If we continue to use it in its current form, it will have a disastrous effect on our planet.

However, if we adopt some of the proposed solutions, we can make it much more sustainable in the long run.

When it comes to Bitcoin, we’re in the midst of a price surge not seen since the famous bull run of late 2017. Below, we outline the underlying conditions driving Bitcoin’s price increases now, and explain some of the key ways they differ from the conditions of 2017.

Bitcoin’s price is rising because demand for Bitcoin is increasing at a time when there’s relatively few Bitcoin available to buy. While the total supply of Bitcoin grows every day as more is mined, the actual amount available to buy depends on whether holders want to sell or trade it.

We quantify this by tracking the amount of Bitcoin held in wallets that send less than 25% of Bitcoin they’ve ever received, which we refer to as illiquid or investor-held Bitcoin, versus Bitcoin held in wallets that send more than that, which we refer to as liquid or trader-held Bitcoin. .

Right now, the amount of liquid Bitcoin is similar to what it was during the 2017 bull run. But the amount held in illiquid wallets is much higher, currently representing 77% of the 14.8 million Bitcoin mined that isn’t categorized as lost, meaning it hasn’t moved from its current address in five years or longer. That leaves a pool of just 3.

4 million Bitcoin readily available to buyers as demand increases. Trade intensity, which measures the number of times each Bitcoin deposited on a spot exchange is traded within that exchange before moving off the platform and is a good proxy for demand on a given exchange, is currently 38% above the 180 day average.

The key difference lies in who’s buying Bitcoin and why. In 2017, most demand came from individual, retail investors buying with their own personal funds.

2020 is the year institutional dollars began flowing into Bitcoin. From high-profile investors like hedge fund manager Paul Tudor Jones, who compared buying Bitcoin to investing early in Apple or Google, to corporations like Square, which invested $50 million or 1% of its total assets in Bitcoin, mainstream companies and financial institutions are turning to Bitcoin.

The institutional move into cryptocurrency appears driven by a desire to hedge against macroeconomic uncertainty, which of course hasn’t been in short supply this year. Jones himself put it well, saying, “Back in March and April, it became really apparent, given the monetary policy that was being pursued by the Fed, other central banks and fiscal policy around the world.we were in an unprecedented time.one had to begin to think about how you defend yourself against inflation.

The data bears out this institutional investment story as well. For one thing, we’re seeing an increase in high value transfers sent from exchanges in 2020.

Bitcoin’s price is rising because demand for Bitcoin is increasing at a time when there’s relatively few Bitcoin available to buy.

We quantify this by tracking the amount of Bitcoin held in wallets that send less than 25% of Bitcoin they’ve ever received, which we refer to as illiquid or investor-held Bitcoin, versus Bitcoin held in wallets that send more than that, which we refer to as liquid or trader-heldBitcoin.

Right now, the amount of liquid Bitcoi.

Bitcoin is deflationary because it has a limited supply. There will only ever be 21 million bitcoins in existence. This is different from fiat currencies, which can be created at any time by central banks.

So, as demand for Bitcoin increases, the price will go up. This is because there are more buyers than there are seller, and each buyer is willing to pay a higher price for the limited supply of bitcoins.

This could lead to a situation where people hoard bitcoins, expecting the price to continue to go up. This would decrease the supply even further, and increase the price even more.

While this may be good for those who own bitcoins, it could make it hard for new people to get involved.

The deflationary nature of Bitcoin could also lead to it being used more as a store of value than as a currency. This is because people are more likely to hold on to their bitcoins if they think the price is going to continue to go up.

This could limit the use of Bitcoin as a currency, as people are less likely to spend it if they think it will be worth more in the future.

When it comes to Bitcoin, Marc Andreessen is a big believer. In fact, he’s one of the most vocal proponents of the digital currency. So, why does Bitcoin matter to Marc Andreessen?

There are a few reasons. First, Andreessen is a big fan of technology and innovation. He believes that Bitcoin has the potential to be a major disruptive force in the financial world. Second, Andreessen is a firm believer in the power of open source software.

Bitcoin is an open source project, and Andreessen is a big supporter of open source projects. Third, Andreessen is a strong advocate for financial inclusion. He believes that Bitcoin can help to empower people around the world who don’t have access to traditional banking systems.

So, there you have it. Those are just a few of the reasons why Marc Andreessen believes in Bitcoin. Do you agree with him?.

If you’re having trouble sending bitcoin from your Coinbase account, it may be for one of the following reasons:

1. The receiving address is invalid or does not exist

2. The amount you’re trying to send is too small

3. You have insufficient funds in your account

4. There’s a problem with the Coinbase network

5. You’re trying to send bitcoin to an unsupported country or region

If you’re still having trouble, we recommend reaching out to our customer support team for assistance.

Since its inception, PayPal has been one of the most convenient ways to send and receive money online. However, in recent years, PayPal has been increasingly hostile towards Bitcoin. Here are four reasons why PayPal is bad for Bitcoin:

1. PayPal prohibits its users from buying or selling Bitcoin.

2. PayPal has frozen the accounts of several Bitcoin businesses.

3. PayPal has refused to process payments for Bitcoin-related services.

4. PayPal has been increasingly slow in processing payments for Bitcoin-related transactions.

These reasons illustrate why PayPal is bad for Bitcoin. While PayPal may be a convenient way to send and receive money, its hostility towards Bitcoin makes it an unreliable partner for those who wish to use Bitcoin.

Bitcoin is a decentralized cryptocurrency, which means that it is not subject to government or financial institution control. Bitcoin is a peer-to-peer system, which means that all transactions are direct between users, without an intermediary.

This makes Bitcoin a very attractive option for those who wish to avoid the fees and restrictions associated with traditional financial institutions.

The most important feature of Bitcoin is its decentralization. By being decentralized, Bitcoin is not subject to the whims of governments or financial institutions.

This gives users a great deal of freedom when it comes to using their coins. They can send and receive payments without having to worry about being censored or blocked by any third party.

Another advantage of Bitcoin is that it is a very secure system. The decentralized nature of the network means that there is no central point of failure, which makes it extremely difficult for hackers to Target.

Additionally, all transactions are verified by the network before they are processed, which further adds to the security of the system.

Finally, Bitcoin offers users a great deal of privacy. Because there is no central authority overseeing the network, users can transact anonymously if they so choose.

This makes Bitcoin an ideal currency for those who value their privacy and do not want their financial activities to be public knowledge.

Overall, Bitcoin is a very attractive option for those who are looking for an alternative to traditional fiat currencies. Its decentralization gives users a great deal of freedom and security, while its privacy features make it an ideal currency for those who value their privacy.

The Bitcoin Standard is a book by Saifedean Ammous that looks at the history and future of money with a particular focus on Bitcoin. The book has been well received by those in the Bitcoin community and beyond, with many calling it a must-read for anyone interested in the topic of money.

Ammous is an economics professor and his book is heavily researched, drawing on a wide range of sources to make its case. The book starts by looking at the history of money, tracing its origins back to barter and early forms of currency.

It then looks at the gold standard and how it functioned as a global monetary system. From there, the book turns to fiat currency and central banking, showing how these systems have led to inflation and other economic problems.

The second half of the book is focused on Bitcoin and why it has the potential to become the global reserve currency. Ammous argues that Bitcoin is superior to fiat currencies and gold because it is scarce, efficient, decentralized, and durable.

He also addresses some of the common criticisms of Bitcoin, such as its volatility and scalability issues.

Overall, The Bitcoin Standard makes a convincing case that Bitcoin could one day replace fiat currencies as the world’s reserve currency. The book is well-written and thoroughly researched, making it a valuable resource for anyone interested in learning more about Bitcoin and money.