The next Bitcoin halvening is to occur in May 2020 and the community expects the price to skyrocket, with some already preparing to buy Lambos. However, a co-founder and partner at the Morgan Creek Digital fund believes that the halvening may have very little effect on the Bitcoin price and even cause a big sell-off.
The Bitcoin halvening may be unhelpful
A co-founder of Morgan Creek Digital, Jason Williams, thinks that the impact the Bitcoin halvening is expected to have on the price of the flagship crypto can be tiny.
One the one hand, the amount of Bitcoin units generated by miners will dwindle by half, making the remaining coins (3 mln out of the 18 mln minted already) more scarce, i.e. valuable. On the other hand, Bitcoin miners will start suffering from losses in profit. As per Forbes, Williams believes that large miners will have to start selling some of their BTC to pay the bills, throwing more coins to the market.
Unpopular Opinion -— Jason A. Williams 🦍 (@JWilliamsFstmed) December 1, 2019
Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.
Forget about getting rich quickly
In an interview, the investor stated:
“Large miners that are holding BTC will have to sell to cover operational expenses or use cash as revenue halves.”
“New buyers have to come in to move this market up. So other than a new headline, the halving is being dealt with now by those who are operationally effected by it. Those that don’t will be priced out of the mining business.”
Forbes reminds the audience that after the previous two halvings occurred (in 2012 and 2016), more than a year passed before the Bitcoin price started soaring. In 2016, right after the event took place, the BTC price first slumped from $707 to $570. This shows that immediate bullish expectations on the BTC price after the halving could be in vain. However, long-term ones are likely to come true.
A crypto expert disagrees
On December 3, the crypto expert PlanB posted a chart, which shows that the crypto market responded to the previous halvings immediately by rising. He said he published that in response to the numerous questions as to why the market took over a year to rise after each of the halvenings.
Getting some questions about why in previous halvings (November 2012 and July 2016) it took well over a year for the market to start surging..— PlanB (@100trillionUSD) December 3, 2019
Well, it didn't .. look for yourself: in the chart the halving is when blue turns to red: the market immediately rises after a halving🚀 pic.twitter.com/geL71dJOV7
PlanB reckons that the Bitcoin price will not be halted after the 2020 event, as it was back in 2016 due to ICOs.
IMO the rise was slower in 2016-2017 because altcoins and ICO's were stealing a bit of the thunder .. that for sure is not going to happen in 2020 pic.twitter.com/26oX7M6WNF— PlanB (@100trillionUSD) December 3, 2019