The bitcoin mining reward has just halved!
The mining reward for bitcoin has just now been cut from 25BTC ($15k) per block to 12.5BTC ($7.5k) per block. Right at the time of the halving the price suddenly dropped $30 to $630. Every 4 years the mining reward for bitcoin is halved.
The mining reward halving is very interesting compared to other national currencies. While national currencies are perpetually having their supply increase (excuses given : stimulate the economy, bailouts etc) rather the rate of bitcoin supply is decreasing. While national currencies have the dilution of their value built into their mechanism rather bitcoin has concentration of value built into its mechanism.
Funny there was a sudden drop in price like that.... I'm thinking I'm going to avoid looking at exchanges for a few days, I've set up a few auto transactions but need to separate myself from trading myself into the ground.
To prevent yourself from over trading set a ratio between USD and BITCOIN and then make trades to maintain that ratio. You can adjust the ratio higher or lower when you are bearish/bullish. Using a ratio like this is much safer as it will cause you to buy dips and sell rises therefore taking profits when the price is not rising. Also put a gap between trading days so if you like 7 days between trades then each week you would readjust toward your ratio.
yeah, I've been doing things manually... mostly trading between coins due to lower fees.
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