Cryptocurrency

LedgerX Introduces a New Option on Next Bitcoin Halving

February 6, 2019

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LedgerX Introduces a New Option on Next Bitcoin Halving

According to a blog post published early today, U.S.-based trading platform LedgerX has released a new derivative contract.

The new offering, called the LedgerX Halving Contract (LXHC), is a binary option — meaning it either pays out in full, or not at all — that is effectively a bet on the next time Bitcoin halves.

Bitcoin halving occurs about once every four years. The event is named as such because the reward for new Bitcoin earned by new miners (meaning the amount of new Bitcoin created) will be reduced by half. The last time this happened was 2016, when the Bitcoin reward decreased from 25 BTC to 12.5 BTC.






In their post, LedgerX explained:

“This contract will allow you to get a fixed payoff if the next halving block (#630,000) happens before a certain date and time. If the block is discovered after, the contract expires at zero. The result is an extremely clean binary payoff that is verifiable by all participants — a great demonstration of the value of a public blockchain.”

Indeed, just like betting on who wins the Super Bowl, the result will be very clear, and arguably even more transparent since it will be verifiable on a public blockchain. According to bitcoinblockhalf.com, the next halving is estimated to occur on May 25th, 2020.

Last month, LedgerX launched the first Bitcoin price volatility index called the LedgerX Volatility Index (LXVX). Explained the company:

“The LXVX incorporates the level of fear and uncertainty in the bitcoin market, and thus can be thought of the ‘bitcoin fear index,’ in the same way the VIX [volatility index] is commonly referred to as a stock market fear index by market commentators.”

The introduction of new crypto trading products is generally seen as a sign of maturity for the space, and a good omen for future investment by institutions and retail traders alike.