Bitcoin, the world’s largest cryptocurrency, has a capped supply of 21 million coins, with almost 90% already mined.
Analysts are now speculating what will happen to the crypto economy when no new coins are being issued.
Unlike other forms of money, including fiat currencies; which can be printed on the whim of central banks, bitcoin has a limited supply capped at 21 million coins by elusive inventor Satoshi Nakamoto.
This means there will only ever be 21 million bitcoin in existence. By August 2021; approximately 18.7 million bitcoin was available, with only some 2.3 million left to be mined, data from Investopedia shows.
The supply limit makes the world’s oldest crypto a limited commodity and controls inflation that could otherwise stem from an unlimited supply of the coin.
It also puts current estimates for the year in which the final bitcoin will be mined at 2140.
This has raised questions about whether bitcoin’s network will remain functional after that time.
Analysts say that bitcoin’s economy has to change to keep the network operational.
Many predict that the cryptocurrency’s ecosystem might be transformed, just as its identity has been.
It was originally introduced as a medium of exchange for daily transactions but later found more popularity as an investment asset instead.
Analysts also say that bitcoin miners could form cartels, much like those that control other commodities, such as the Organization of Petroleum Exporting Countries (OPEC); which controls the oil production market.
Another possibility laid out by analysts is that bitcoin could become a reserve asset; which would reduce the number of transactions on the crypto’s network as retail traders and small trading firms are replaced by large institutional and trading players.
They would conduct fewer and more expensive trades, stretching the time for the final bitcoin to be mined.
And, finally, the cryptocurrency’s protocol may be changed to let production go on after it reaches its 21 million limit. But that would decrease the value of bitcoin already mined; which coin holders are unlikely to accept.
Currently, however, bitcoin’s scarcity and rising prices have been attracting speculative investors; with their bets leading to volatile price swings which draw serious investors away from the cryptocurrency.
Bitcoin’s price this year jumped from its peak value of $60,000 in February to half that amount during the summer and up again to $55,000 per coin this week.
Still, some countries like El Salvador and Cuba see potential in the currency, already taking steps to make it legal tender.
Britain’s competition regulator said on Friday it had secured improved commitments from Alphabet’s Google on changes to user-tracking cookies in its browser, including the U.S. tech giant extending the time any pledges would last to six years.
The Competition and Markets Authority (CMA); has been investigating Google’s plan to cut support for some cookies in Chrome because it is concerned the move could impede competition in digital advertising.
Google proposed making changes to its plan, which is called “privacy sandbox”, in June; including allowing the CMA an oversight role.
Google has said the commitments, if accepted, will apply globally.
The CMA said Google had made new pledges to address some remaining concerns, including offering commitments around reducing access to IP addresses and clarifying internal limits on the data that it could use.
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CMA Chief Executive Andrea Coscelli said: “We have always been clear that Google’s efforts to protect users privacy cannot come at the cost of reduced competition.”
He added: “If accepted, the commitments we have obtained from Google become legally binding, promoting competition in digital markets; helping to protect the ability of online publishers to raise money through advertising and safeguarding users’ privacy.”
Google said in a blog that is was “determined to ensure that; the Privacy Sandbox is developed in a way that works for the entire ecosystem”.
The CMA said it would consult on the new commitments until on 17 December. (Reporting by Paul Sandle and Huw Jones; editing by Guy Faulconbridge)
B.1.1.529 has multiple mutations and it could help; it evade the body’s immune response; and make it more transmissible, South African scientists said on Thursday.
While the delta variant has two mutations and the beta variant has three ;— the B.1.1.529 variant has at least 32 spike protein mutations.
Younger people appear to be contracting and spreading the newly identified variant; but the next weeks will be key in determining how severe the variant is, scientists said.
Germany’s health minister and the director of federal agency for disease control and prevention; the Robert Koch Institute (RKI), were asked about the B1.1.529 variant during their weekly press briefing on Friday.
Health Minister Jens Spahn told reporters in Berlin that the “high number of mutations” noted were “at least cause for preliminary concern;” even if tests were ongoing to determine how transmissible or how resistant to vaccines the variant was.
He described the German decision to impose travel restrictions on South Africa and some other countries in the region, with an exact list yet to be decided; as a “necessary, proactive, preventive protective measure.”
RKI director Lothar Wieler said that some genome mutations appeared to “suggest that there could be a higher rate of transmission.”
“And there are other mutations where it’s not yet clear what they mean biologically. That means we really are very concerned,” Wieler said.
Spahn was also asked about people who had recently returned to Germany from South Africa.
Legally, he said, the new restrictions could only apply once imposed. However, he appealed to anyone who’d recently returned from southern Africa; even if it was 10 or 20 days ago, to isolate themselves and to “take a test — and preferably a PCR test.”
Markets down across the board on variant news
Germany’s blue chip stock index DAX was down 3% and the UK’s FTSE 100 was down and on course; for its biggest drop in a year on news of the new COVID-19 variant in the morning trading session.
The FTSE 100 was down to its lowest in nearly two months; with a sell-off being led by commodity, travel and banking stocks.
Oil fell below $80 (€71) per barrel.
Bitcoin also tumbled 7.8% to $54,337, its lowest since October 12.
The second largest cryptocurrency by market capitalization, Ether, tumbled 11.6%.
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Investors dashed to the relative safety of the Japanese Yen and the Swiss franc Friday.
Gold also rose 0.7% on Friday.
Roland Kaloyan, the head of European equity strategy at Societe Generale, told Reuters: “We don’t know so much about this variant yet but if it’s serious; it could change the macro scenarios altogether.”
Israel finds case of variant
Israel’s Health Ministry said it had detected its first case of the new coronavirus variant in a person returning from Malawi.
In a statement Friday, the ministry said the individual; and two other individuals with suspected cases of the variant were all in quarantine.
All three were fully vaccinated.
Prime Minister Naftali Bennett held consultations with health experts Friday regarding the variant.
“During the night I was informed that there is one verified case here in Israel; and this is disturbing,” he said.
On Thursday, authorities announced travel to southern Africa from Israel for citizens was banned and foreign nationals from the region would be denied entry.
“We are currently on the verge of a state of emergency,” Bennett said.
Officials sound the alarm
Scientists are studying the variant that was first detected in South Africa earlier in the week.
The National Institute for Communicable Diseases in South Africa said 22 cases of the new B.1.1.529 variant; as it is known, had been detected in the country but that it expected more cases as genomic analysis is ongoing.
The WHO’s COVID-19 technical lead Maria Van Kerkhove said there are currently fewer than 100 whole genome sequences of the strain available.
She said it would take a few more weeks of scientific work to determine whether the variant would be considered a “variant of interest” or a “variant of concern.”
“Everybody that’s out there needs to understand that the more this virus circulates; the more opportunities the virus has to change, the more mutations we will see,” Van Kerkhove said.
The UK Health Security Agency reports the new variant has also been detected in Botswana and Hong Kong.
Germany’s health ministry moved to declare South Africa a virus variant area.
The WHO convenes emergency talks
The WHO convened an emergency meeting set for early Friday afternoon to discuss the new variant.
Scientists are concerned about the high number of mutations within the variant and worry it could be resistant to vaccines and more easily passed on to others.
The working group meeting Friday will determine whether to officially label the variant “of concern;” a distinction only four variants to date have received.
Countries move to close air traffic from southern Africa
Countries in Asia and Europe including Germany; the Czech Republic, Italy and the UK quickly imposed restrictions Friday after the emergence of a potentially vaccine-resistant COVID-19 variant was detected in South Africa.
The EU moved to halt air travel from the entire southern African region amid concerns over the newly detected South African variant; the European Commission president Ursula von der Leyen said.
She said the Commission will propose “to activate the emergency brake to stop air travel from the southern African region” due to the emergence of the new variant.