More Investors Say Bitcoin Halving Is Not Priced In
A crucial event in the crypto space is scheduled for May 2020. It is called halving and it means that the number of coins issued for every block to miners will be reduced to 50 percent. It will be reduced 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 is just 21 million BTC in existence. This helps to achieve the aim of Satoshi Nakamoto: the development of a scarce, hard form of money different from fiat money that is printable without limits.
Some market participants are unconvinced about the influence of the event on the Bitcoin market. However, a renowned investor in the crypto space known as Alistair Milne asserts that there is no way that the halving is priced in.
He recently noted that half of all newly mined BTC will be absorbed by the purchases of clients of two firms following the halving in 2020. The two firms include Grayscale and Square. This does not account for Coinbase customers’ inflow, individuals buying crypto via RobinHood as well as eToro, and more.
That is, if there is persisting demand or growth, the halving will only enhance Bitcoin’s supply-demand economics model, thereby increasing the prices with plenty time.
After halving, ~50% of all newly mined Bitcoin will be absorbed by just two companies: GBTC and Square
This ignores the 30million Coinbase customers, people investing via RobinHood, eToro, etc. etc
… but tell me again how halving is priced in.
— Alistair Milne (@alistairmilne) December 21, 2019
However, some do not agree with the view of Milne. One of such is Jason Williams.
Williams said that the halving event will have no effect on the price of BTC. He continued that it is going to be a non-event. His opinion came when a powerful downtrend ensued in the crypto markets, threw cold water on many bullish sentiment and narratives being pushed earlier this year.
Unpopular Opinion –
Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.
— Jason A. Williams 🦍 (@JWilliamsFstmed) December 1, 2019
In spite of the real details concerning the possibility of the halving priced in, analysts maintain that the directionality of the crypto space is decidedly positive.
Andy Bromberg recently provided an arguement that:
“We are seeing a level of building that has happened in 2019 [which makes it feel like] we’re in the moment of everyone is putting on their jumpsuits, ready to take off.”