US Professor Predicts Impact of Bitcoin Halving on Price
In the upcoming Bitcoin “halving” event, which is eagerly awaited by cryptocurrency enthusiasts, an assistant professor at Columbia Business School and author of the book “Re-Architecting Trust The Curse of History and the Crypto Cure for Money, Markets, and Platforms,” named Omid Malekan, has offered his predictions on the event’s impact. He states that while the halving is not a cause of concern for those who view Bitcoin as a store of value, it will have a significant effect on miners.
Malekan explains that individuals who consider Bitcoin to be a reliable store of value will not be greatly affected by the halving. However, the situation is quite different for miners, as the reduced rewards they receive after the halving can have a substantial impact on their profitability.
Although the halving itself does not have a direct influence on the price of Bitcoin, the anticipation surrounding the event can lead to unexpected price fluctuations. Douglas Boneparth, a certified financial planner and Bitcoin owner since 2014, states that as the halving approaches, speculation tends to increase, which can result in high volatility in the Bitcoin market. Investors might purchase Bitcoin in hopes of capitalizing on potential price increases; however, there is no certainty or guarantee of such outcomes, and this increased speculation only adds to market volatility.
Boneparth further emphasizes that assuming a limited supply will always result in price increases is not accurate. He asserts that such a perspective fails to account for the multitude of variables that can cause the price of Bitcoin to move in any direction on any given day.
In summary, the impact of the Bitcoin halving on its price remains uncertain, but experts believe that the event will have a greater significance for miners compared to those who view Bitcoin as a store of value. Anticipation surrounding the halving can lead to increased volatility in the market, and the notion that a limited supply will always drive the price up is not necessarily true.