Bloomberg Editor: “Bitcoin ‘Halving’ is Completely Irrelevant As A Price Driver”, CT Reacts
There are less than 290 days left in the block reward halving that is scheduled for 18 May 2020. Bitcoin halving is the most anticipated and purportedly bullish event that affects the supply flow of the leading cryptocurrency.
According to Joe Weisenthal, the executive editor of news for Bloomberg Digital and the co-anchor of “What'd You Miss?” took to Twitter to “piss off a lot of Bitcoiners” as he says halvening is irrelevant in driving BTC price skywards.
Popular analyst Murad Mahmudov says, “literally no one believes that the bitcoin market is smart or efficient.” As for there being no edge to knowing about the event or trading around it:
“if everyone can all agree on the same event happening at a known time.”
“What % of the world do you think is aware of Bitcoin's halvening?,” is Mahmudov’s response.
Weisenthal says it is irrelevant that most people know nothing about the halving event, only a small % need to know to matter.
No wonder the mainstream media doesn't understand Bitcoin. They write dumb takes like this and then try to defend it will horrible logic.
Future headline from you: "Bitcoin 10X'd to $100,000 but it had nothing to do with the halving!"
— Pomp 🌪 (@APompliano) August 2, 2019
The Bitcoin block mining reward halving occurs every 210,000 blocks that is every four years that reduces the reward by half. The upcoming halvening would be the third such time which will decrease the reward from 12.5 coins to 6.25 BTC.
Currently, Bitcoin inflation rate per annum is 3.75% which will decline to 1.8% after this halving.
As per the historical data, after the first halving in 2012 Bitcoin price went from $11 to $1,100, only to get back down to $220. The second halving saw BTC going from $230 to about $20,000, the all-time high of BTC. After this, BTC came back down to $3,200.
This time, the halving is expected to make a new ATH and take us $50k, $100k or according to some BTC price predictions $1 million.
Well, what about the fact that million dollars buy pressure hits the market every day from the 1800 BTC miner emission, this will be 900 BTC on May 2020 that will hit the market enabling price goes up, as asked by one enthusiast.
“The very fact that you are aware of that means you’re expecting, which means that every fund is expecting it, (and expecting that others are expecting it), so any positive view has been expressed long before the halving,” clarifies Coin Metrics co-founder Nick Carter.
Adam Back, co-founder and CEO of Blockstream explains how price rise as it gets closer to the halving event because there is “volatility risk overlaid,” for someone to price in, they have to hold it from now until May.
The volatility risk, he says deters over longer-term and as the event gets closer, volatility risk is shorter term.
This is regarding the poll, part of his “piss off a lot of Bitcoiners” thread, regarding the effect on price if:
“suddenly tomorrow there were a surprise halvening and new supply of the coin collapsed?”
Last month, a report by Strix Leviathan found that the running bullish narrative around the halving event could be just an “illusion of validity” and “increasing levels of speculation.”