Banks Would Panic for More USD if Halving is Done for Fiat Like Bitcoin’s Doing In Less Than 1 Year
The year 2020 will be an important year in the history of Bitcoin and indeed cryptocurrency because of the halving that is to come. On the contrary, more fiat is being printed around the world, which results in inflation. Co-Founder of Morgan Creek, Anthony Pompliano compares the situation of Bitcoin with that of the U.S Dollar.
He said if fiat supply is cut in half, banks will start to panic (FOMO) because of the scarcity. However, this is not likely to happen but Bitcoin which is already pretty scarce will be cut in half in 2020 and it will be a huge event.
Pompliano implies that the FOMO will be high even prior to the halving which is to take place almost exactly one year from now.
Imagine if daily printing of US dollars was suddenly cut in half forever. Bankers would be FOMOing even though USD isn't a scarce asset.
Now imagine what they're going to do when the daily Bitcoin supply is cut in half for one of the scarcest assets in the world.
I can't wait.
— Pomp 🌪 (@APompliano) May 22, 2019
Bitcoin halving is an event that happens every four years as a feature of the Bitcoin network. This is basically the halving of block rewards which has happened twice in 2012 and 2016 and 2020 will be the third time since the creation of the cryptocurrency.
The block reward for Bitcoin is currently 12.5 BTC for every block mined, and will be cut down to 6.25 BTC by 2020. What this means is that the quantity of Bitcoin being churned out over any period of time will reduce by half.
By the law of economics, the lower the supply of any good or service, the higher the price and so the price of Bitcoin is expected to soar as a result of this event as fear of missing out (FOMO) will descend on everyone who has been waiting to get a piece of the cake at a lower price.
Already, a certain level of FOMO is mounting as Bitcoin continues to rise. Although it has been slow for a few days, experts say every sign in the space points to an impending bull market.
Some Twitter users, one of which is a prominent financial journalist fired back at Pompliano, saying the U.S government is controlling the supply of the U.S Dollar by burning the excess and so his assessment is wrong.
Whether this is true or not is not known, but the fact is there is a huge FOMO coming even ahead of 2020 and those who have not bought Bitcoin could do so now before it’s too late.