Bitcoin was the first cryptocurrency, created in 2008. We don’t know who created it, we just have a pseudonym, Satoshi Nakamoto, who disappeared soon after it was up and running. Their last public communication was in December, 2010. The creation of Bitcoin is sometimes called a Sacred Launch, because of the manner in which it started… Continue reading Bitcoin`s Sacred Launch
Month: September 2022
Lost or Burned Coins
Another factor that further muddies the waters around supply distribution is the number of coins that can never be spent because their Private Keys are lost, or they have been sent to a burn address. Though there are some well-publicised cases where significant amounts of bitcoin have been lost, it is impossible to put an exact figure… Continue reading Lost or Burned Coins
2. Supply Distribution
Whereas the Supply Schedule tells you what the currently Circulating Supply is and the rate at which coins are being created, Supply Distribution takes into consideration how coins are spread among addresses, which can have a big influence on value, and is another important part of tokenomics. Given cryptocurrencies like Bitcoin are open source, this… Continue reading 2. Supply Distribution
1. Supply schedule
Bitcoin went live in January 2009, based on a set of rules – the Bitcoin Protocol – that included a clearly defined supply schedule: New bitcoins are created through Mining. Miners compete to process a new block of transactions by committing computing power to solve a mathematical puzzle. They do this by running a set algorithm… Continue reading 1. Supply schedule
What are Tokenomics?
So much about the crypto ecosystem is novel and disruptive, including its vocabulary, which features entirely new words, invented to describe entirely new concepts. Tokenomics is a great example. It is what is known as a portmanteau, a word that blends the meaning of two other words – tokens and economics. It fills the empty space… Continue reading What are Tokenomics?
What you`ll learn
What you’ll learn An understanding of what tokenomics measures The role of supply & distribution in tokenomics Bitcoin & Ethereum’s tokenomics How incentives relate to tokenomics
Going deeper with metrics
The metrics we’ve introduced represent the most commonly used examples. They are freely available for anyone with the know-how to harvest from Bitcoin’s blockchain, or any other open blockchain for that matter, but are just the tip of iceberg in terms of potential measures of Bitcoin’s health. For those that really want to explore data… Continue reading Going deeper with metrics
Measuring Usage
With the means to establish Bitcoin’s scarcity and security, we can essentially measure its effectiveness as sound money. That information, is however, meaningless unless we know whether anyone is actually using it. Given its open source nature, we can access a number of useful usage metrics: Number of Blockchain Addresses This is the raw measure of… Continue reading Measuring Usage
Security and Hashrate
There is no point in a scarce money that isn’t secure. The role Miners play is not only to ‘issue’ new bitcoin, they also secure the network and that security can also be measured in an objective way, which is crucial – it is known as Hash Rate. Hash Rate is the estimated computing power… Continue reading Security and Hashrate
Measuring Bitcoin Issuance
Previous articles on Learn Crypto have explained the role played by different participants. One of the key participants are Miners who are crucial to the issue of scarcity as they generate new bitcoin – also known as issuance. It is crucial that issuance is predictable and smooth, and again data can prove this process is happening as… Continue reading Measuring Bitcoin Issuance