Crypto 101

Crypto Year in Review: 2nd Quarter

Welcome back to our Crypto Rewind for 2020!

If you haven’t seen the 1st Quarter, here it is:

Through June, April was about the commencing squabble from the spread of COVID-19 – another event that we don’t want to rehash.

This year’s second Quarter saw anticipation running high for the Bitcoin halving in the crypto world, while Libra Foundation has been forced to halt its grandiose plans.

Libra Crawls Out

April 16

The digital currency from Facebook, Libra, has gone through many, many iterations since its announcement in 2019. Initially, the company promised a permissionless system, something that is impossible, and Facebook went back on in April of this year when Libra Foundation (now Diem) launched a scaled-back plan for the tech. It is going from something phenomenon to a wallet for stablecoins.

Halving of Bitcoin

May 11

The rate of new Bitcoins mined halves every four years. This was a part of Nakamoto’s original design: in 2009, when Bitcoin was introduced, mining rewards were locked at 50 BTC – an amount that halved twice before this year. The supply is capped at 21M, and most of it has already been mined, reducing the rate where new Bitcoin is minted will ensure a steady supply of new Bitcoin until 2140.

Bitcoin’s third halving happened on May 11, 2020, and decreased mining rewards to 6.25BTC. And although traders were anticipating the price to rise, Bitcoin didn’t end up skyrocketing yet.

Volatility Comes Along

May

Halving is twinned with volatility – Bitcoin’s price climbed from below $5,000 back up to $10,000 in May, then fluctuated by the 11th. The hurdles continued until June, for the number changed between the 9000s and the low 10,000s.

This created a way for MicroStrategy to buy low, last August, kickstarting will become Bitcoin’s Bull Run later in 2020, providing traders with a taste of the widespread adoption that may come with the fall.

Racial Justice Movement Muted

May

Many crypto companies failed to respond to the racial justice movement that alarmed the country in the wake of George Floyd. Robert Greenfield described the total response on executives as “really weak and almost non-existent.”

Brian Armstrong, Coinbase CEO, reprised his support for the Black Lives Matter movement in a tweet that time. However, a New York Times article described what some employees described as the racist or discriminating Black workers’ treatment at the company. Coinbase denied the allegations.

The Hacking of UCSF

June 30

Hackers have targeted the University of California, San Francisco School of Medicine; then the university ended up paying a $1M ransom in Bitcoin. It was one of the many high-profile cases this year where anonymous criminals executed operations in crypto.

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