The price of bitcoin slumped ahead of the next halving event, which slashes revenues for those who create new units of the online cryptocurrency. File picture: Reuters/Benoit Tessier
The price of bitcoin slumped ahead of the next halving event, which slashes revenues for those who create new units of the online cryptocurrency. File picture: Reuters/Benoit Tessier

Bitcoin value drops ahead of expected cryptocurrency halving event

By Bernhard Funck and Rachel More Time of article published May 11, 2020

Share this article:

Berlin - The price of bitcoin slumped ahead of the next halving event, which slashes revenues for those who create new units of the online cryptocurrency.

After briefly topping the 10,000-dollar mark late last week, many investors got rid of their bitcoin currency over the weekend, causing its value to drop to as low as 8,520 dollars.

The cryptocurrency could only slightly recoup its losses on Monday, when it was trading at around 8,700 dollars.

The process of halving is anchored in the digital currency's code and occurs roughly every four years, in a bid to protect against losses caused by excessive supply.

It limits the rewards for bitcoin "miners" - people who run computer programmes that free up new bitcoin units - after every 210,000 blocks are mined. Blocks, which make up the currency's blockchain protocol, are files carrying transaction data.

The next halving is expected for later on Monday.

Supporters of the currency, meanwhile, are expecting a rise in value to follow and have therefore been investing more ahead of the event.

dpa

Share this article: