Some stylized facts about bitcoin halving

Mohammadhossein Lashkaripour

Finance Research Letters, 2024, vol. 69, issue PB

Abstract: Bitcoin halvings are associated with two potential phenomena: (1) they limit Bitcoin supply, potentially boosting prices, and (2) they reduce miners’ revenue, which might undermine network security and lower prices. We explore Bitcoin’s response to recent halvings in 2012, 2016, and 2020, aiming to identify the dominant effect. Our findings indicate that halvings slightly depress prices, increase transaction fees, decrease price volatility, and reduce miners’ revenue. We document mixed reactions in other network metrics, such as the total transaction value. While Bitcoin trading dynamics markedly respond to halvings, the sensitivity of network characteristics to these events has diminished over time.

Keywords: Bitcoin halving; Miners’ revenue; Transaction fee; Block reward; Network security (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012273

DOI: 10.1016/j.frl.2024.106198

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