Bitcoin ‘Mining” Outlook Uncertain
Simpley put, all Bitcoin transactions are recorded on a blockchain, a public, decentralized, permissionless ledger. The transactions are recorded in bundles, called “blocks,” by “miners” who receive a small reward in kind for mining. The process creates new Bitcoins.
Miners currently earn 25 Bitcoins per block that is 16.175.
The beginning with the mining of the 420,000th block, which happened Saturday, the reward falls to 12.5 Bitcoins rewarded per block mined.
This will reduce the creation of new Bitcoins from 9% down to about 4% annually. It’s an event that people in the digital currency world have been anticipating for months with great excitement, and some uncertainty.
The Big Q: What does it mean?
The Big A: There are signs that the halving could will a major impact on the price movement many say higher.
The last time the mining reward was halved, after 210,000 blocks, was on 28 November 2012. The price did nothing significant on the day, then saw a slow increase in the weeks that followed, part of a run to the highest price Bitcoin has ever seen, above $1,200 a year later.
Bitcoin is up 49% over the last 3 months, and 115% YTD of $652.67/each
Every time Bitcoin rises, people point to China, the de facto global capital of Bitcoin and where the majority of miners are based. But the digital currency is an asset untied to any single country’s economy or currency, much like Gold, meaning the factors that raise or drop its price are varied and difficult to explain.
The only thing one can count on from Bitcoin in the next few weeks after the halving is volatility.
Experts say that is does not necessarily mean the everyday investor should stay away.
Have a terrific weekend.
Latest posts by Paul Ebeling (see all)
- President Trump, “The Only Crimes are Against Us” - July 23, 2017
- Ferrari Celebrated its 70th Anni at Windsor Castle - July 22, 2017
- Get Smart, Learn to Say “I Don’t Know” - July 22, 2017