On the 11th of May, The rewards for Bitcoin per block were halved.

Many thought this would make the price of Bitcoin skyrocket.

But did it?

As you can see, on May 10th, the price of Bitcoin dropped $807.

Why?

The halving of block rewards means that Bitcoin miners earn half as much as they earned before.

But then shouldn't the price skyrocket?

Ok, let's assume you use 350 watts at $0.01 per watt with a hashrate of 1000. (very unrealistic, but works)

You're making a profit. Not much, but you should have an entire farm running.

Now, we reduce it by half.

Now you're losing more and more for each machine you have.

So what do they do?

Simple. They retire.

They sell all their ASICs, sell all their Bitcoin, their power plants and go into retirement.

And with so many people selling at the same time, the price is sure to drop.

Thanks for reading.