Bitcoin cryptocurrency market surges by over $13 billion as major “halving” event approaches.

  • Bitcoin crosses $10,000 on Friday. The entire cryptocurrency market value jumped by more than $13 billion.
  • Part of the rise in bitcoin’s price has been anticipation of a technical event known as “halving.”
  • Bitcoin is not issued by a centralized authority.
  • “Miners” use computers to compete with each other to solve complex math problems to validate bitcoin transactions. Whoever “wins” gets rewarded a new bitcoin.
  • Currently, miners receive 12.5 bitcoin per block mined. The rewards are halved every four years to keep a lid on inflation. On May 12, the reward per miner will be cut in half again, to 6.25 new bitcoin.
  • The effect is that the supply of bitcoin coming onto the market is reduced and thus, the price typically increases.