Crypto Enthusiasts Speak on the Forthcoming Bitcoin Halving
On the 2nd April 2020, the Blockstream Co-Founder and CEO, Adam Back, took to his Twitter account to address the upcoming Bitcoin halving issue. The halving will take place on the 13th of May 2020. Adam pointed out that just as central banks worldwide are doing enormous amounts of qualitative easing (QE), Bitcoin will do what he calls qualitative hardening. He claims that this qualitative hardening will occur next month with Bitcoin’s next block reward halving.
The Bank of England states qualitative easing is a tool that central banks use to inject money directly into the economy. QE aims at creating new money, thus boosting spending and investment in the economy. Adam Back suggests that this might be the best time to buy Bitcoin because of all the central banks’ money printing.
Crypto enthusiasts expect that the printing of fiat money by the Federal Reserve to boost the U.S economy during the Covid-19 crisis may make the dollar lose its value, and investors may move back to Bitcoin to hedge against inflation. According to a recent tweet, Adam’s assessment is that Bitcoin does not connect to the real economy, which is about to take a substantial hit due to the ongoing worldwide lockdown.
Galaxy Digital’s CEO on Bitcoin Halving
Recently, the former Goldman Sachs partner and CEO of crypto-focused merchant bank Galaxy Digital, Michael Novogratz, also proposed on his Twitter account that this is the best time to buy Bitcoin. It is because of all the money printing happening in the world’s central banks.
Novogratz shares a similar opinion as Adam Back that Bitcoin will be the go-to asset for individuals looking to escape the blow of the global economic crash on their stock portfolios. With stock shrouded in uncertainty and cash suffering from massive quantitative easing programs, Bitcoin is the safest option.
The Crypto Community Now Focusing on Decoupling
As the Coronavirus continues to wreak havoc on traditional markets, the focus is now on decoupling. Given that US entities get caught in the worst sell-off since the Great Depression, many hope that Bitcoin will be the safe-haven and hedge investors from massive losses.
Additionally, the fact that Bitcoin remained steady during last week’s stock market sell-offs gives bulls a glimpse of hope, that the king crypto may have just reset its fair value along with its reputation as a haven asset during a world crisis.