LedgerX Contracts: Bet on Next Bitcoin Mining Rewards Halving Event

LedgerX, a federally-regulated institutional trading and clearing platform for conducting cryptocurrency swaps and options trades, has introduced a new binary contract for bitcoin (BTC).

In an official blog post, LedgerX’s development team noted that their LedgerX Halving Contract (LXHC) will allow users to bet on what they think will be the date of the next halving of bitcoin mining rewards. Every four years, the compensation bitcoin miners receive (for validating blocks of transactions) is reduced by 50% and the event is commonly referred to as “halving.”

Betting On The Next Halving Event

The next bitcoin “halving” event is expected to take place in approximately 473 days from today, or after 68,276 additional blocks have been produced on the Bitcoin blockchain. This, according to data from the Bitcoin Block Reward Halving Countdown. As mentioned in LedgerX’s announcement:

This [LXHC] 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.

Traditional binary contracts allow people to bet on win/lose types of events - which typically occur in sports games or elections. However, LedgerX’s bitcoin halving binary contract is different because bets are being placed on the outcome of an event that will definitely happen, whereas conventional binary contracts may bet on events which might not occur.

Comparing oil extraction processes and bitcoin mining, LedgerX’s post explains: 

To give an analogy, imagine you are an oil producer such as Exxon Mobile and know that one day in 2020, the number of barrels of oil you extract will go down by half, forever. But you’re not certain which date that will be. This would materially impact planning for investment and operations. Bitcoin miners face this exact risk approximately every 4 years for the block reward that they earn.

LedgerX's Bitcoin Savings Account

In May 2018, LedgerX launched a bitcoin savings account, which allows investors to earn interest on their BTC deposits. The crypto account also allows users to earn 2X the spot price on the product’s purchase date, if the price on maturity (expiration of contract) is approximately twice what it was when the contract was first issued.

Based in New York City, LedgerX has obtained a license from the US Commodity Futures Trading Commission (CFTC) as both a Derivatives Clearing Organization (DCO) and a Swap Execution Facility (SEF). Since launch, LedgerX has been developing crypto-related financial products that are functionally similar to traditional forms of investments. For instance, the basic idea of the LedgerX savings accounts is to allow investors to earn a yield, or return, in fiat currency (USD) on their bitcoin holdings.

In addition to 'HODLing' cryptocurrency, users can earn interest on their bitcoin deposits which is somewhat similar to what traditional banks offer with products like certificates of deposit (CD).

Kanye Says He Wants to Run for President, Bitcoin Fan Elon Musk Endorses Him

Siamak Masnavi

American rapper, singer, songwriter, record producer, composer, entrepreneur and fashion designer Kanye West celebrated July 4, U.S. Independence Day, by announcing his intention to run for U.S. president in 2020.

So how did Kanye launch his bid to be on the ballot at the 2020 United States Presidential Election, which is scheduled for 3 November 2020?

Well, late on Saturday afternoon (California team), Kanye sent out the following tweet:

Minutes later, came this endorsement from Tesla and SpaceX CEO Elon Musk, who has often expressed his interest in cryptocurrency in general and Bitcoin in particular:

Not wanting to be left out of the conversation, a couple of hours, American media personality, businesswoman, socialite, model, musician, and actress Paris Hilton made it clear that she would not mind being U.S. president either:

As FOX News reported a short time ago, this is not the first time that Kanye has expressed his intention to become U.S. president.

Apparently, back in November 2019, at the fifth annual Fast Company Innovation Festival in New York City, he said that he planned to run for U.S. president in 2024:

"When I run for president in 2024, we're going to definitely -- yo, whatchu [sic] all laughing at? When I run for president in 2024, we would've created so many jobs that, in fact, I'm going to walk...

"What I'm saying is, when y'all read the headlines, 'Kanye's crazy,' this and that, this and that, it's like one in three African-Americans are in jail and all of the celebrities are in jail also because they can't say nothing [sic]! They've got no opinion! They're so scared!"

According to the U.S. Constitution, here are the requirements for presidential candidates:

  • be a natural-born U.S. citiizen
  • be at least 35 years old
  • be a U.S. resident for at least 14 years

Since Kanye meets all these requirements, he is allowed to declare his candidacy for president. After he has raised or spent more than $5,000 for his campaign, he must register with the Federal Election Commission.

In May 2018, Kanye talked about Bitcoin during an interview with American radio presenter "Charlamagne tha God". 

He said:

"When you're acting in love, you're like a drop of water and you have the ocean as your army. When you act in fear, it's just you and your money.

"Now you can take your money and put it in Bitcoin, put it in credit form, put it in cash... and then stand up to the ocean and who's gonna win? 

"We definitely are dealing with racism but I want to push future concepts, you know.

"Now I'm doing I'm giving you two streams of consciousness in one. I want to talk about my wife. I also want to talk about Harriet Tubman on the twenty dollar bill... That's the moment I wanted to use Bitcoin."