Halving Ho-Hum; Bitcoin Roller Coaster Resumes




MISSION ACCOMPLISHED

Bitcoin’s halving, a once-every-four-year event that cuts the reward miners receive for every 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 within the next year. Twin brothers Cameron and Tyler Winklevoss, the founders of the Gemini exchange, said, “We’re set for one more order of magnitude boost up — whether $20,000 is that the bitcoin base, maybe we see $100,000.”

On the provision side, the halving magnifies the importance of cost efficiency for miners. With the return for mining each bitcoin becoming suddenly less enticing, the common breakeven price for miners might be a minimum of $10,000, shortly from where the worth of bitcoin is now. If inefficient miners have to liquidate their rewards to remain afloat, it could flood the market with supply and threaten even more miners with a price decline.

Bitcoin crashed 10% within the span of half an hour last Saturday, resulting in an outage on Coinbase, a recurring problem recently for the favored American exchange. But bitcoin recouped most of its losses because the week progressed, nearing $10,000 again Thursday while the stock exchange dipped to its lowest in three weeks. Investors perceived to be spooked by Fed Chairman Jerome Powell’s warning that the U.S. is facing an “extended period” of weak economic process “without modern precedent.”

SOURCE: MESSARI. PRICES AS OF 4:00 P.M. ON MAY 15, 2020.

HOPE FOR A U.S. BITCOIN FUND?

The big apple Digital Investment Group disclosed that it's sold nearly $140 million in an exceedingly 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 referred to as the “sheriff of Wall Street” for issuing billions in fines to financial institutions while he was New York’s superintendent of monetary services from 2011-2015.

JPMORGAN OPEN FOR BUSINESS

JPMorgan Chase has changed its tune on bitcoin and can begin offering bank accounts to the Coinbase and Gemini exchanges. The Wall Street Journal reported that the bank finalized the partnerships in April and can offer deposit, withdrawal and transferring services to both exchanges’ customers. The move comes but three years after outspoken CEO Jamie Dimon infamously called bitcoin a “fraud.”

Although most coverage revolves around bitcoin’s price fluctuations, this type of institutional involvement that legitimizes crypto as a mainstream alternative investment class could also be the foremost encouraging sign for crypto and blockchain’s future.

DIGITAL DOLLAR PATENT

The U.S. Patent and Trademark Office revealed Thursday that Visa filed a application last November to make digital currencies on a centralized computer using blockchain technology. The patent would let Visa digitize a financial institution digital currency anywhere within the world. Although it withdrew from Facebook’s Libra Association last fall, Visa remains well-versed within the world of crypto—in February, it granted permission to Coinbase to issue a open-end credit that may allow users to spend their cryptocurrencies through the cardboard.