Limited Supply of 21 Million for Bitcoin (BTC) is to Blame for The Bullish Growth: eToro’s Greenspan
The explosion in the price of Bitcoin over the past few weeks is bringing back the sweet old memories of its massive bull run experienced in 2017. Already, this cryptocurrency has more than doubled in value, up from $3200 way back in December 2018 and isn’t showing any signs of slowing down.
The main reason for this isn’t clear even as many Bitcoin enthusiasts keep praying for the price to shoot further up. For some, FOMO is driving the price upsurge, while for others, it is an abnormal sentiment swing.
eToro’s Mati Greenspan Thinks BTC will Keep Rising as XRP Lags
One of the most renowned personalities to speak about this phenomenon is eToro’s senior market analyst, Mati Greenspan. According to him, the fact that BTC is actually 21 million BTC coins are in supply and not the entire bunch is in circulation is driving the price up.
Greenspan believes the momentum is just the start of an even more powerful rise. His sentiments about XRP and Ripple company aren’t new in the cryptosphere, however. Many crypto enthusiasts have in the past bashed the altcoin, throwing shade at the massive supply held by Ripple.
But while BTC holders are now feeling joyous, holders of the second largest altcoin are wallowing in anguish and despair. XRP failed to match what the bulls have been exhibiting and only has minimal gains to show.
In a Tweet, eToro’s senior market analyst had a theory explaining why the fortunes of XRP are dwindling. This phenomenon, according to Greenspan, is mostly because Ripple actually holds over half of the 99 billion XRP coins in supply.
The halving of Bitcoin Rewards Scheme is a year away
Greenspan’s assertion on the price of BTC surging as that of XRP stagnates is pegged on the halving protocol. The protocol dictates that once the entire 210,000 Bitcoin blocks have been mined, the mining reward is halved. The same bonus is eligible to be split after every four years.
The next halving of Bitcoin mining rewards is set for May 2020. The rewards will drop from 12.5 BTC for every block to 6.25 BTC.
However, the exciting thing with this is how the price tends to move as halving edges closer. The value of a single BTC usually shoots a year to three months before the actual halving happens.
Longhash, a reputable crypto-analytics company, believes that it’s only a matter of time before Bitcoin mining fees become an essential financial incentive among miners. According to a May 10 report, the total fees one could amass while mining the leading cryptocurrency is eight times lower than that of all the other altcoins combined.