Post Bitcoin Halving Blues
Post Bitcoin Halving and Anti-Climax
We’ve been writing about the Bitcoin halving a lot, into its lead-up. It occurs only once every 4 years.
It’s kind of like the olympics for Bitcoin. It’s rare and significant and there are huge celebrations because of it.
The implications for the network itself are potentially significant.
Implications on the price? Well, there was a lot of speculation leading up the event itself. The reward finally halved over the weekend and the actual result was a little anti-climactic.
The price more or less remained unchanged. It has been hovering around the ZAR 9,400 mark since the the reward halving. There were no dramatic, sustained, price changes.
Prior to the halving, by mere moments, there was a fairly sharp decline from ZAR 9,550 to ZAR 8,950. But that sell-off was only short lived.
The last time there was a block reward halving, 4 years go, the price was also largely unaffected.
Post Bitcoin Halving Fallout
So it seems that the halving event really does have no impact on the price. This makes sense. The event itself is perfectly known to all market participants, well in advance. So it should already be factored into the market.
Today is Bitcoin Halving Day. I’ve written up an analysis of its economic & monetary significance:https://t.co/sV9YqMVDBy
— Saifedean Ammous (@saifedean) July 9, 2016
Now that we have seen the block reward halve with no immediate impact on price, again, speculation has turned to the medium-longer-term affects on price on the network and its security.
With block reward now cut in half, and no subsequent doubling in the price, miners have now seen their profits cut in half. Miners are already on razor thin margins. So this could have dire implications for the smaller ones.
For now there is no clear signal for short-term trade. We seem to be in a period of extended consolidation. Rising miner’s fees are definitely on the cards, as mining operations look to make up for the losses in revenue as a result of the halving in the Block reward.