Every four years, the block reward for Bitcoin miners are cut by half. The previous halving took place in July 2016 and the next halving is expected to take place in May 2020. While the price of Bitcoin has been moving sideways without any major surge or fall, the community believes that the halving could make its price soar. Speaking about the same and what he expects from the same, Spencer Bogart a General Partner at Blockchain Capital, appeared in a recent interview.
Bogart revealed he was on the fence regarding it, as he said “in the truest sense of there are no risk-free returns to be had here”; in this sense, he was 100 percent priced in. Many are sure that the price of the king coin would surge post halving; Bogart, however, believes that it is a very nuanced thought. Elaborating on two major factors that one should consider, he said,
“One is that halving kind of represents this shelling point, right? A natural point of convergence for capital that’s on the sidelines and is interested in allocation towards Bitcoin. So you know, there is a significant sum of capital that’s in that kind of position today.”
Bogart revealed that they conduct a survey every 18 months and they found out that 27% of all respondents in 33% of those aged 18 to 34 said they are very or somewhat likely to buy Bitcoin in the next five years. He pointed out that there is capital in the sidelines where people are contemplating purchasing Bitcoin. He added,
“But all of a sudden when people start talking about the halving in this reduction in new issuance rate, it drives more purchasing and this reflective kind of feedback loop that’s, that really drives the Bitcoin market where rising price drives more infrastructure, more OnRamps, more computing power, secure in the network, better liquidity, all of which kind of feeds into a rising price.”
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