Bitcoin Completes Third Halving; Tether Adds 100M USDT on Tron Network

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The world of cryptocurrency witnessed several pivotal developments in May 2020, headlined by Bitcoin’s highly anticipated third halving event and strategic moves across digital asset issuance, regulatory approvals, and market sentiment. This article unpacks the most significant happenings, from network-level changes to macroeconomic implications and institutional adoption trends.

Bitcoin’s Third Halving: A Milestone in Digital Scarcity

At 03:23:43 UTC on May 12, 2020, Bitcoin successfully completed its third block reward halving at block height 630,000. The event, broadcasted by AntPool, reduced the block reward from 12.5 BTC to 6.25 BTC per block—a mechanism hardcoded into Bitcoin’s protocol to control inflation and reinforce its deflationary nature.

👉 Discover how Bitcoin halvings shape long-term investment strategies and market cycles.

This milestone underscores Bitcoin's role as digital gold, with its fixed supply cap of 21 million coins enforced through predictable emission reductions every 210,000 blocks (approximately every four years). Historically, halvings have preceded major bull runs, fueling speculation about future price movements based on supply scarcity.

A Nod to History: F2Pool Honors Satoshi’s Legacy

In a symbolic gesture echoing Bitcoin’s origins, F2Pool inscribed the headline of a New York Times article into the final pre-halving block (629,999). This act pays homage to Satoshi Nakamoto, who embedded the Times headline from January 3, 2009—"Chancellor on Brink of Second Bailout for Banks"—into the genesis block, highlighting Bitcoin’s emergence amid global financial instability.

F2Pool’s move reinforces the cultural and philosophical continuity within the crypto community, linking today’s technological milestones with the original vision of decentralized finance.

Tether Expands USDT Supply on Tron Network

Stablecoin giant Tether increased its presence on the Tron blockchain with an authorized addition of 100 million USDT. Recorded at approximately 23:14 Beijing time on May 11, the transaction (hash: 9dd585...) was confirmed via Whale Alert and acknowledged by Bitfinex CTO Paolo Ardoino.

It's important to note that this is an authorized but not yet issued transaction—meaning the newly minted USDT serves as inventory for future issuance requests rather than immediate circulation. This strategic reserve-building enables faster deployment of stablecoins in response to market demand, particularly on high-throughput networks like Tron.

With growing adoption in DeFi and remittance use cases, USDT remains one of the most widely used stablecoins, offering traders and investors a low-volatility bridge between fiat and digital assets.

Why Tron? Scalability Meets Adoption

Tron’s high transaction speed and low fees make it an attractive platform for stablecoin transfers and decentralized applications. As more users engage with dApps and gaming platforms on Tron, demand for pegged assets like USDT continues to rise—making such supply expansions critical for ecosystem growth.

👉 Explore how stablecoins are transforming cross-border transactions and digital wallets.

Regulatory Progress: Croatia Approves First Bitcoin Fund

In a sign of growing institutional acceptance, Croatia’s financial regulator Hanfa approved the country’s first regulated Bitcoin investment fund. Managed by Griffon Asset Management and custodied by state-owned HPB bank, the passive digital asset fund will focus exclusively on Bitcoin exposure.

Initial fundraising targets are set at 1 million HRK (approx. $144,000), with the approval marking a significant step toward mainstream crypto integration in European markets. The decision reflects increasing regulatory clarity and investor interest in regulated crypto products—a trend accelerating globally.

This development aligns with broader movements across Europe and North America, where traditional finance players are exploring ways to offer compliant access to digital assets.

Market Sentiment and Institutional Interest

Legendary macro investor Paul Tudor Jones revealed in a CNBC interview that his portfolio includes slightly over 1% exposure to Bitcoin—potentially nearing 2%. He described Bitcoin as “the best trade I’ve ever made” amid concerns over monetary inflation and central bank balance sheet expansion.

Jones emphasized viewing Bitcoin conservatively—as a small but strategic hedge against currency debasement. His endorsement adds weight to the narrative of Bitcoin as a store of value, especially during times of economic uncertainty.

Meanwhile, data from PwC and Elwood Asset Management shows that crypto-focused hedge funds saw their total asset management规模 (AUM) double in 2019. Key findings include:

These figures highlight deepening institutional involvement and evolving investment strategies within the crypto space.

Mining Landscape Post-Halving

Post-halving dynamics are expected to reshape the mining industry significantly. F2Pool co-founder Suan Yu (a.k.a. “Shen Yu”) predicted a potential drop in network hashrate by “tens of percentage points,” citing limited room for further cost optimization in electricity expenses.

Additionally, due to unchanged mining difficulty in the short term, alternative cryptocurrencies like Bitcoin Cash (BCH) and Bitcoin SV (BSV) may offer higher profitability for miners temporarily.

On the operational front, BiXin Mining CEO Liu Fei suggested that miners relying on hydropower with electricity costs above ¥0.17/kWh or thermal power above ¥0.30/kWh could face淘汰 (淘汰 means elimination) post-halving. This signals a tightening competitive landscape favoring large-scale, low-cost operations.

Global Blockchain Adoption: From Qatar to Hubei

Qatar Central Bank Explores DLT Solutions

The Qatar Central Bank (QCB) unveiled plans to adopt blockchain and fintech innovations to support SME financing through the Qatar Development Bank (QDB). By leveraging distributed ledger technology (DLT), QCB aims to streamline credit access, enhance risk management, and modernize transaction reporting systems.

Use cases under exploration include payment settlement, record-keeping automation, and backend process efficiency—demonstrating blockchain’s potential beyond cryptocurrency.

Hubei Province Boosts Digital Economy

In China, Hubei province announced aggressive plans to develop its digital economy following pandemic recovery efforts. The provincial government emphasized accelerating infrastructure projects like 5G networks and data centers while promoting industries such as cloud computing, artificial intelligence, and blockchain technology.

The initiative targets full-sector digital transformation in agriculture, industry, and services—positioning blockchain as a foundational tool for next-generation economic development.

Emerging Products: ErisX Launches Physically-Settled ETH Futures

U.S.-based crypto derivatives exchange ErisX launched physically-settled Ethereum futures contracts—the first of their kind available on a regulated American platform. Contracts are based on ETH/USD pricing and offer monthly and quarterly expiry options.

Physical settlement means traders receive actual ETH upon contract fulfillment, enhancing transparency and reducing counterparty risk compared to cash-settled alternatives. This product marks another step toward mature crypto derivatives markets.

Investment Momentum: Lolli Raises $3M for Bitcoin Rewards App

Lolli, a Bitcoin cashback platform, secured $3 million in Seed II funding led by Pathfinder—a early-stage fund associated with Peter Thiel. Additional investors include notable figures like Michelle Phan and existing backers from Bain Capital Ventures and Digital Currency Group.

Funds will support the launch of Lolli’s mobile app and international expansion in 2020. The platform allows users to earn Bitcoin when shopping at partnered retailers—encouraging everyday adoption through incentivized spending.

FAQ Section

Q: What is a Bitcoin halving?
A: A Bitcoin halving is an event that occurs roughly every four years (every 210,000 blocks) where the reward miners receive for validating transactions is cut in half. It’s a built-in mechanism to control supply inflation and maintain scarcity.

Q: Why does the halving matter for price?
A: Reduced block rewards decrease new Bitcoin supply entering the market. Historically, this supply shock has preceded significant price increases, though other macroeconomic factors also play a role.

Q: Is USDT safe to use?
A: USDT is one of the most widely adopted stablecoins backed by Tether Ltd., which claims to hold reserves equivalent to its circulating supply. While concerns about transparency persist, its widespread use in trading pairs makes it a key liquidity tool.

Q: How do halvings affect miners?
A: After a halving, miner revenue from block rewards drops by 50%. Miners with high operating costs may become unprofitable, leading to consolidation in the industry and shifts toward more efficient hardware or energy sources.

Q: What does “physically settled” mean for ETH futures?
A: Physically settled futures require delivery of actual Ethereum tokens upon contract expiration, rather than settling in cash. This reduces counterparty risk and strengthens market integrity.

Q: Can individuals invest in crypto hedge funds?
A: Many crypto hedge funds are open only to accredited or institutional investors. However, some platforms offer tokenized versions or index funds that provide indirect exposure to managed crypto portfolios.

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