The Bitcoin Price Hike is mainly because it cannot be censored by any third party, including governments. But even after layers and layers of security, developers are still searching for loopholes that powerful parties can use to bend the rules and attack the system from within. For that, Bitcoin Improvement Protocol 324 (BIP-324) is in consideration.
Recently, Bitcoin crossed the fundamental $30,000 mark that it has been unable to reach for the last 8 to 10 months. The reason is mostly because of the CPI report that came in a few days back. There’s a chance that Bitcoin might go to over $31,500, but simultaneously, $29,000 is also possible.
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Here we’ll see how Bitcoin rose in value and what security layers Developers are adding to further strengthen the Bitcoin consensus.
Bitcoin Goes Over the Fundamental $30,000 Mark. Will It Hold Its Place?
After many months Bitcoin Price has finally crossed the $30k mark. The traders are again more than confident that Bitcoin has all the features to touch the $100k mark in the near future, depending on the market conditions and improvements in the system.
According to experts, there’s a high chance that this Bitcoin Price Hike will favour the market even more. The current string resistance of $31,500 is yet to be tested, but Bitcoin has now consolidated back to around $27,000.
Does CPI Report in the US Improve the Crypto Market’s Situation?
On April 12, the U.S. Consumer Price Index (CPI) was released, which became one of the defining factors for BTC to break the $30k resistance. The previous CPI was 6.0%, showing that inflation still rules the US.
For this month, the big guns were expecting a price index of around 5.2% but were surprised to see the figure of 5.0% in reality. This sent a wave across the market, eventually hiking the price of major cryptocurrencies and not only the BTC itself.
CPI directly affects the crypto market. When traders see a decrease in inflation, they tend to invest in the crypto market as they have kept a spare sum of money, which can now be used to build assets. So the next time you see a CPI report coming, book your profits smartly.
With System Upgrades Available in Bitcoin, Is BIP 324 Launching Soon?
The founder of BTC has never been found in decades, but the team of developers working behind it is always active and searching for loopholes that anyone could exploit. The BIP 324 Integration is a long-delayed Bitcoin improvement proposal that would indefinitely eliminate all the threats to the BTC consensus protocol.
But how does one exploit the system backing BTC?
It’s simple. BTC communicates via Nodes on the network by using encrypted data. Powerful organisations can start an attack as a “Man-in-the-middle” and disguise themselves as one of the Nodes to gather information about Transactions secretly.
The BIP 324 Integration was proposed in 2021 and is still in process. But it is near completion as developers test it on the main Bitcoin network. They are currently seeking more developers to test out the project and ensure that it will help secure the BTC network even more.
Strengthening the System with BIP 324 Integration – Securing Transaction Pathways
The developers are more worried about entities with enough resources to target one of the weakest chains in the BTC system, the Nodes. These are run by people worldwide; If someone gets into one of them, they can easily track your location and the transaction pathways and stop you from doing so.
Also, with the increasing growth in BTC, governments might try to infiltrate the system, locate the source of transactions and make it near impossible to initiate the transitions further as it endangers their currency.
To encounter all these issues, BIP 324 System Integration is soon to be launched. It will make it more difficult to attack the system as the attacker will have to individually get into every node, thus making it far more complicated to comprise the entire system.
The developers believe these attacks cannot be stopped, but their severity can be diminished by making it more and more difficult for attackers. That’s what BIP 324 will do soon enough for BTC.
Frequently Asked Questions
Can Bitcoin Touch $100,000 in 2023?
Because of the recent bear market in 202, there’s a low probability of BTC touching $100k in 2023. According to experts, BTC will break the $100k milestone in the next bull run, expected to happen in the later months of 2024 or the start of 2025.
How Does BIP 324 Save Transactions from Being Tracked?
The BIP 324 system encrypts the messages being transferred on the network between nodes. Currently, these messages are sent in plaintext, which is easier to hack and exploit. But BIP 324 Integration will now use stream cipher ChaCha20 to encrypt these messages.
Should I Invest My Savings in Bitcoin or Any Other Cryptocurrencies?
BTC is the oldest and biggest cryptocurrency, making it the most secure token to invest money in. Apart from it, Ethereum is the second biggest currency and is also a secure option for people looking to hold the tokens for a longer period to achieve significant gains.