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Bitcoin Price Drops 5% Amid ‘Halving’
Summary: Bitcoin, the digital money, has just undergone its second-ever “halving” event. The halving event has proven—and will continue to prove—consequential for the mining set. The Bitcoin backers who supply the CPU time and electricity that fuel the Bitcoin network do so to recoup a reward. Although the markets have been pricing in the impact of ...
Bitcoin, the digital money, has just undergone its second-ever “halving” event.
The halving event has proven—and will continue to prove—consequential for the mining set. The Bitcoin backers who supply the CPU time and electricity that fuel the Bitcoin network do so to recoup a reward. Although the markets have been pricing in the impact of the long-awaited trim over the past few weeks, some miners face an uncertain fate: their prize just dropped to 12.5 Bitcoins per processed block, down from 25. With less potential revenue on the table, fewer miners may survive. Already, KnCMiner, a Swedish Bitcoin mining startup, filed for bankruptcy in May.
As the halving got underway, Bitcoin’s price fell 5% to near $627 per Bitcoin from about $660, according to CoinDesk data. At press time, the value of the cryptocurrency appeared to be recovering from the initial drop; its price hovered at just under $640, about a 4% drop for the day. Expect more volatility as the markets adjust.
By Liang CHE
