Although crypto enthusiasts and investors have waited long for the bull run, their patience is likely to be tested in the future as well. As per the co-founder at digital asset fund Morgan Creek Digital, Jason Williams, the bitcoin halving scheduled for 2020 will not impact the price of bitcoin at all. According to his understanding, bitcoin’s price will be impervious to bitcoin halving.
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
As bitcoin halving is a phenomenon that takes place every four years, it is often associated with the price of bitcoin. After the last two halvings, bitcoin’s price surged substantially while attaining new all-time highs (ATH), after the respective halvings. This explains why investors and enthusiasts in the space look forward to the halving.
Apart from that, the price of bitcoin is said to be dependent on the fundamentals of supply and demand. This means that if the demand for bitcoin exceeds its supply, the price of bitcoin is likely to increase. As the rate of production of bitcoin is expected to decrease after the halving, many people expect the reduced supply of bitcoin to impact its price in a positive manner.
At the moment, after every 10 minutes, miners are awarded about 12.5 bitcoins. But they will receive 6.25 bitcoins only after the bitcoin halving. As due to halving the production of bitcoin will slow down, it becomes evident that bitcoin’s supply will decrease with time. This accounts for the bullish sentiment possessed by many people in the space who expect bitcoin halving to lead to a bull market.
Bitcoin introduced over a decade ago has gained the trust of many. Although bitcoin is mostly known for speculation due to its volatile nature, recent facts reveal that more than half of bitcoin owners aren’t interested in some short time gains.
About 64% of bitcoin owners haven’t traded bitcoin and rather decided to ‘Hodl’ their shares. Although the bitcoin has been up by more than 85% since last December when bitcoin revolved around $3,100, more than half of investors haven’t moved bitcoins from their wallet.
11,580,00 bitcoin have not moved in over a year.
Even with a 85% increase in price during that time, those millions of bitcoin were not sold or traded.
Hodlers of last resort are insane. pic.twitter.com/KTpeDrLlOO
— Rhythm (@Rhythmtrader) December 1, 2019
While it is possible that bitcoin owners are mostly carrying bitcoin in the hope of a bull run, Williams thinks that halving will definitely not be the reason for any change in the crypto market. Let’s see if Willaim’s idea of halving not impacting the price of bitcoin turns true.