- Google threat Bitcoin ecosystem with their Sycamore Quantum Computer.
- According to experts, the next halving in the Bitcoin mining rewards will occur on May 14, 2020.
- Dollar-Cost Averaging strategy has yielded a return over 500 % since 2014.
The threat from Sycamore.
Google’s threat was announced a few weeks ago after the success achieved with the first tests of its quantum computer processor, called Sycamore.
During the tests, Sycamore managed to perform a series of very complex, yet tailor-made, mathematical calculations in just seconds, achieving the long-seeked quantum supremacy. A current supercomputer would take years to achieve the same calculation results.
There was immediate speculation about Sycamore's ability to break Bitcoin's algorithm or that it could mine in a few seconds the approximately 3 million Bitcoins not mined yet.
The experts explain that should this technology put the security of the Bitcoin network at risk, it could be compensated by the application of the same computing power in keeping the network healthy. Moreover, Sycamore still lacks the computing power needed to mine Bitcoins.
A fully featured quantum computer would also put at risk the entire global encrypted data exchange system. From health data, bank accounts or military communication.
However, it will still take years of engineering advances for quantum computers to become commonplace.
Source: Google Labs
2020: The Halving of Bitcoin
All the miner's calendars have highlighted next May, the next halving’s expected month. And in blood red for those who have an arsenal of old mining equipment.
New miners are shuffling mining costs around $3,000, just under half of the current mining expenses.
Once halving is activated, the difficulty of being rewarded will double and make the search for profitability almost unbearable for old devices.
Source: Source: Coindesk
Dollar-Cost Averaging Strategy
A recent study published by Coinbase makes it clear that the strategy of buying small amounts of Bitcoin periodically on time, avoids exposure to high asset volatilities.
Bitcoin is the most profitable asset of the last decade, says the report and only in the current year profitability reaches a 132%, well above any stock market index.
The Dollar Cost Averaging strategy proposes to buy the same amount of dollars regularly (weekly or monthly), regardless of the price of Bitcoin. Applied in the last four years on a monthly basis, it yields a return of 595%.
At the time of writing these lines, Bitcoin loses the level of $8,700 and quotes now at $8,685 price level.
According to the most orthodox analysis, in no case should the BTC/USD pair lose the level of $7,550, although at the end of October it broke this rule although it found support at $7,500 and recovered upwards.
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