2016 has become a year of revival for the bitcoin price.
At a press time total of $640, the price of bitcoin is up nearly 50% from its opening on 1st January. While macroeconomic factors including uncertainty in China and Europe have arguably played a role, there may be no bigger influence than the upcoming halving, a rare network event that will occur this weekend.
While nobody knows for certain how the long-awaited reduction in rewards to miners will affect the network, market experts offered a range of predictions when speaking with CoinDesk on how it may impact the price of bitcoin.
Some forecasted the event would push prices higher, while others expected it to have a depressing effect or no impact at all on bitcoin prices. Market experts also offered a range of predictions for how the halving will affect bitcoin volatility.
For background, bitcoin miners use high-power computers to compete to add blocks of transaction data to the bitcoin blockchain. Every time a miner successfully completes a new block and provides a proof of work, that miner receives a reward. This reward, which was originally 50 BTC, is expected to drop to 12.5 BTC on or around 9th