Tim Shaler, Economist-in-Residence at iTrustCapital, explains the upcoming ‘halving event’ and its implications for Bitcoin and other cryptos.
“The upcoming ‘halving event’ is the process whereby the algorithm to create new Bitcoin will become more difficult and thus fewer Bitcoin will be created. Such events were ‘built-in’ to the original design of Bitcoin.”
“There does seem to be some concern in the community that the upcoming ‘halving event’ might be so onerous that perhaps the Bitcoin market might split with two succeedings ‘forks’.”
“Some people are afraid the upcoming ‘halving event’ will be bad for Bitcoin. We believe that fear is misplaced. Thus, to the extent the potential bad event was feared but does NOT come to pass, BTC prices might rally. BTC prices might rally because people currently afraid of the halving event might enter the BTC market after the halving event does not disrupt the BTC market.”