It is the one thing the entire cryptocurrency space is anticipating: the bitcoin block reward halving.
In 19 days, the number of bitcoin released with each block reward will drop from 12.5 to 6.25, a 50% cut in supply.
This will be the third halving in bitcoin's lifetime and it has market participants across crypto speculating about the potential ramifications. Namely, whether it will result in a pop in bitcoin's price or whether it is priced in.
In this episode of The Scoop, we welcome GSR Trading co-founder Rich Rosenblum to dig into the halving. Rosenblum, who spent ten years at Goldman Sachs trading oil, kicked things off with the firm's transition from a programmatic trading firm in a retail driven market into a broker offering bespoke products to help miners hedge their risks.
We also discuss:
- The fundamental difference between oil and bitcoin in terms of supply and demand dynamics
- The similarities between mining operators and shale producers
- The reason why U.S.-based "institutional" offerings have failed to launch while the Asian derivatives market has taken off
- How trading firms and market participants are preparing for the halving, and, of course, whether it is priced in
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