Bitcoin has been on a wild ride.
Already over the past year, Craig Wright stepped forward as Satoshi Nakamoto, bitcoin’s anonymous founder, but later backed away from those claims; a civil war raged at the upper echelons of the bitcoin community over changes to the network’s code; a renowned bitcoin developer wrote a eulogy for the cryptocurrency; and another virtual currency, ethereum, exploded in popularity.
Against this backdrop, the price of bitcoin has nearly tripled.
It’s nearly impossible to say why bitcoin has done so well. But as an asset not directly tied to a single economy, it tends to attract investors when there’s a lot of volatility. There’s certainly been no shortage of that.
Now, a looming event expected around July 9th, known as “the halving,” could rattle the entire bitcoin system—its price, its stability, and its future.
What’s going on?
Before we get started, we should go over how bitcoin works. Bitcoin is a digital currency that lets two people enter into a financial transaction without any middlemen. While simple to use, the technology is loaded with checks and balances to eliminate fraud.
One of the keys to preventing fraud is the process of mining. Bitcoin transactions