Bitcoin Halving: Will It Affect the Cryptocurrency’s Price
In May 2020, there will be one of the critical events in the crypto space, known as Bitcoin halving, which involves reducing the number of coins for every block issued to miners by 50%. The coins will get relieved from 12.5 to 6.25, thereby cutting the inflation rate of Bitcoin by half.
If the event continues to hold in years to come, it will make sure that there are just 21 million Bitcoins in existence. Therefore, this will help achieve the aim of Satoshi Nakamoto, developing a scarce hard form of money, unlike fiat money, which is printable without limits.
Some Market Participant Views on Bitcoin Halving
Some market participants are not convinced about the influence of the event on the Bitcoin market. Alistair Milne, a renowned investor, asserts that no way the halving will get priced. He recently noted that half of all newly Bitcoin will get absorbed by two firms’ clients’ purchases. These two firms are Grayscale and Square. There are also Coinbase customers involved, individuals buying crypto via Robinhood, eToro, and more. Meaning that if there is persisting demand or growth, the halving will only enhance Bitcoin’s supply-demand economic model, thereby increasing the prices with plenty of time.
However, some market participants disagree with Milne’s views, and Jason Williams is one of them. William believes that halving events will not affect Bitcoin’s price. He said that the halving will be a non-event, and his opinion came when a powerful downtrend ensued in the crypto market, threw cold water on many bullish sentiments and narratives that got pushed earlier this year.
Despite the real details concerning the possibility of the halvings priced in, analysts maintain that the crypto space’s directionality is decidedly positive. Andy Bromberg mentioned the essential developments experienced by Bitcoin, Ethereum, and other blockchains in 2019 and said that the level was felt last in 2017.