Cryptocurrency
Bitcoin Traders Feel Fever of ‘Halvening’ Months Ahead of Date
As reported on Bloomberg, “Bitcoin enthusiasts are beginning the new year fixated on something that likely won’t happen until May. “Whether a planned reduction in rewards for mining Bitcoin will boost prices or it’s already factored in is dominating discussions across mediums from Twitter to analyst reports. “In a halvening — also referred to as halving — […]
As reported on Bloomberg, “Bitcoin enthusiasts are beginning the new year fixated on something that likely won’t happen until May.
“Whether a planned reduction in rewards for mining Bitcoin will boost prices or it’s already factored in is dominating discussions across mediums from Twitter to analyst reports.
“In a halvening — also referred to as halving — Bitcoin rewards that go to the so-called miners that support the coin’s network drop in half in order to prevent inflation from eroding the purchasing power of the coins. In the previous reductions, the price rose about 8,000% in the year after the 2012 decrease and around 2,000% in the 18 months following the 2016 cut, according to data complied by Bloomberg.
“Many observes say it could be different this time around since Bitcoin has become more mainstream and such events are typically priced in as markets mature. The Bitcoin options market, for example, doesn’t show increased price volatility for around the time of the halvening, which could mean that its impact is already factored in, according to crypto data tracker Skew…”