Blockstream CEO Explains Why Next Bitcoin Halving Is ‘Quantitative-Hardening’
- Dr. Adam Black believes that Bitcoin (BTC) investors are flocking to crypto exchanges to buy this dip
- The Blockstream CEO explained that the impending BTC Halving would be a quantitative hardening that will lead to the rise in the value of the crypto asset
- Adam added that the quantitative easing (QE) measures currently deployed by the U.S will drive investors to BTC
Adam took to Twitter to point out that just as central banks around the world are busy doing massive amounts of quantitative easing (QE), Bitcoin is looking forward to what he calls quantitative hardening. He also points out that this will arrive next month with Bitcoin’s next block reward halving.
According to the Bank of England, quantitative easing is a tool that central banks can use to inject money directly into the economy. The aim of QE is simple: by creating this ‘new’ money, central banks aim to boost spending and investment in the economy.
The Blockstream CEO suggested that this might be a good time to buy Bitcoin due to all the money printing being done by the world’s central banks. He tweeted:
“People talk about hard money – bitcoin quantitative hardening is the sound of #bitcoin getting even harder. All while the world loses its fiat mind and plummets into quantitative easing infinity.”
It is widely expected that with the printing of fiat money by the Federal Reserve to boost the U.S economy during the coronavirus-related crisis, many investors may be wary that the dollar could lose its value, and will move back into bitcoin to hedge against inflation.
Now Would Be a Good Time To Buy BTC
Just last Tuesday, former Goldman Sachs partner and CEO of crypto-focused merchant bank Galaxy Digital, Michael Novogratz, proposed on twitter that this might be a good time to buy Bitcoin during the dip due to all the money printing being done by the world’s central banks.
Michael seems to share the same opinion with Adam black that BTC will be the go-to asset for those looking to escape the blow of the global economic crash on their stock portfolios.
With stock shrouded in uncertainty and cash suffering from ‘huge’ quantitative easing programs, Bitcoin seems to be the safest bet. Adam’s assessment, according to a recent tweet, is that BTC is ‘completely disconnected’ from the real economy that is just about to take a substantial hit due to the ongoing global lockdown.
Forget the Halving, It’s Now About Decoupling
For months now, the upcoming Bitcoin halving in May has been the main bull narrative given the token’s historic price surge after such events. However, the focus seems to have now shifted to decoupling from the U.S. stock market as the Coronavirus continues to wreak havoc on traditional markets.
Given that U.S. equities are caught in the worst sell-off since the Great Depression, many are hoping that BTC will be the safe-haven asset it was designed to be and hedge investors from massive losses.
The fact that BTC has held steady during last week’s stock market sell-off gives bulls a glimpse of hope that the king crypto may have just ‘reset’ its fair value along with its reputation as a safe haven asset during a world crisis.