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The Bitbuy Brief: Learn About Smart Contracts
Article Author: Bitbuy Staff
Bitbuy Staff
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Issue 143: Learn About Smart Contracts

July 15th, 2021
If you’ve been following crypto for a while, you’ve probably heard the term “smart contract”.
Smart contracts are the backbone of Ethereum, and allow such innovations such as DeFi and NFT’s to operate effectively on the Ethereum network.
But what exactly is a smart contract, and how does it work?
Who decides when the terms of a smart contract transaction has been fulfilled?
We’ve put together a handy guide that answers all of these questions and more – be sure to check it out!

Weekly Market Recap

 

Analysis: Crypto continues to sell off across the board, with Bitcoin dipping below $40K CAD for the first time since June 22nd, just over 3 weeks. A recent report from CryptoCompare reports that volumes traded diminished by at least 40% month-on-month, with spot and derivatives trading both seeing sharp declines.

Big Story: After Nearly 10 Years, a $26M Crypto Wallet Is Back

 

 

A bitcoin address that has not been active since June 2012 has just come out of dormancy. The Twitter bot Whale Alert spotted 640 of the 791 bitcoins moved to an unknown address. You can see this transaction here. Looking back one year to 2011, 791 bitcoins were worth approximately 0.30 each for a total of $237.30. In just one year, this wallet was worth $4,168.57, a promising investment and now a million-dollar fortune.

So, what does this mean for other bitcoin investors? Are the actions of bitcoin whales a sign of the times to come?

Satoshi Era Wallets Reborn

Any wallet dating back to the time before mysterious bitcoin creator Satoshi Nakamoto disappeared can be referred to as a Satoshi Era wallet. Many of these wallets are still in existence, only recently breaking headlines. Back in March of this year, the same Twitter bot noted 5000 bitcoins were transferred from a wallet that was inactive for seven years. And another occurred just a few weeks before, where 100 million dollars worth of bitcoin was moved.

It’s true many of us who bought at a higher price, look back and think if only we had bought sooner. But, if we did, would we have sold out? The hodl or hold on for dear life strategy has gained popularity for encouraging people to not buy or sell on impulse. Instead, encouraging long-term holds on risky investments. Although this strategy is not guaranteed, it has proven successful for many.

Does this mean anything for the market?

If these whales are coming out of hiding, does this mean bitcoin is going to crash? Not necessarily. Looking back at our earlier numbers, if bitcoin was purchased at $5 for a total wallet worth about $4000, an increase to $26 million is a 616418% gain, one that is not commonly seen in the marketplace. Therefore, even if the investor believed there was still growth potential, cashing out now is a secure option, and $26 million is nothing to sneeze at.Many analysts remain bullish towards bitcoin, especially with rumours of Apple buying some digital currency for themselves. Although there is a lot of speculation, there is no doubt that Bitcoin has given us food for thought in the world of finance and ignited a spark that continues to burn.
*This opinion piece is not investment advice, always do your own research.

Other Headlines & News

Square To Enter Crypto Hardware Market With Bitcoin First Wallet – Square
Italian Regulator Says Binance Is Unauthorized – CoinDesk
Paraguay Proposed Bitcoin Law Includes Crypto Registration – CoinDesk
Why Crypto Miners Are Expanding Beyond Quebec – Yahoo Finance
Bitcoin To Be As Big As The Internet  – WOAS Podcast

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