Lots of Bitcoin News: The Bitcoin halving & Why Bitcoin is King and could soar…
[This if from Forbes. Jan]
MISSION ACCOMPLISHED
Bitcoin’s halving, a once-every-four-year event that cuts the reward miners receive for each new coin they create in half, was executed without a hitch Monday afternoon. If the trend that followed its first two halvings continues, its price could soar to all-time highs in the next year. Twin brothers Cameron and Tyler Winklevoss, the founders of the Gemini exchange, said, “We’re set for another order of magnitude step up — whether $20,000 is the bitcoin base, maybe we see $100,000.”
On the supply side, the halving magnifies the importance of cost efficiency for miners. With the return for mining each bitcoin becoming suddenly less enticing, the average breakeven price for miners could be at least $10,000, not far from where the price of bitcoin is now. If inefficient miners need to liquidate their rewards to stay afloat, it could flood the market with supply and threaten even more miners with a price decline.
CRYPTO MARKETS
Bitcoin crashed 10% in the span of half an hour last Saturday, leading to an outage on Coinbase, a recurring problem recently for the popular American exchange. But bitcoin recouped most of its losses as the week progressed, nearing $10,000 again Thursday while the stock market dipped to its lowest in three weeks. Investors appeared to be spooked by Fed Chairman Jerome Powell’s warning that the U.S. is facing an “extended period” of weak economic growth “without modern precedent.”
Source: Messari. Prices as of 4:00 p.m. on May 15, 2020.
HOPE FOR A U.S. BITCOIN FUND?
The New York Digital Investment Group disclosed that it has sold nearly $140 million in a previously unknown bitcoin fund despite starting sales just last week on May 5. The NYDIG fund’s predecessor was advised by Stone Ridge Asset Management, whose head of regulatory affairs, Ben Lawsky, became known as the “sheriff of Wall Street” for issuing billions in fines to financial institutions while he was New York’s superintendent of financial services from 2011-2015.