{"id":60736,"date":"2020-03-18T15:11:58","date_gmt":"2020-03-18T13:11:58","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=60736"},"modified":"2020-05-27T02:33:08","modified_gmt":"2020-05-27T00:33:08","slug":"why-bitcoins-halving-might-not-boost-btcs-value-this-time-round","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/why-bitcoins-halving-might-not-boost-btcs-value-this-time-round\/","title":{"rendered":"Why Bitcoin&#8217;s Halving Might Not Boost BTC&#8217;s Value This Time Round"},"content":{"rendered":"<p><strong>In brief:<\/strong><\/p>\n<ul>\n<li><strong>The current global economic environment is very different from past Bitcoin halving events.\u00a0<\/strong><\/li>\n<li><strong>The first halving event was on November 28th, 2012; the Second was July 9, 2016; and the Third halving event is estimated to occur around 12th May 2020.\u00a0<\/strong><\/li>\n<li><strong>Perhaps LTC&#8217;s performance during last year&#8217;s Litecoin halving was a warning sign that Bitcoin&#8217;s value will not go up.\u00a0<\/strong><\/li>\n<\/ul>\n<p>A tweet by legendary commodities trader, Peter Brandt, has sparked a lot of debate regarding the upcoming Bitcoin halving event and its effects on the value of BTC. In the tweet, Mr. Brandt suggests that the event is grossly over-rated and that the real supply of BTC is equivalent to its daily trading volume. He further explains that the daily reduction in mined BTC is roughly 1% of this value. His tweet can be found below.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin halving = <a href=\"https:\/\/twitter.com\/hashtag\/Grossly_over_rated?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">#Grossly_over_rated<\/a><\/p>\n<p>The daily trading volume of BTC = the REAL supply of BTC<\/p>\n<p>The daily reduction of mined <a href=\"https:\/\/twitter.com\/search?q=%24BTCs&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$BTCs<\/a> (NEW supply) equals approx 2\/100th of 1% of REAL supply<\/p>\n<p>Reduction of NEW supply b\/c of halving as % of REAL supply = chump change<\/p>\n<p>&mdash; Peter Brandt (@PeterLBrandt) <a href=\"https:\/\/twitter.com\/PeterLBrandt\/status\/1239899835181875200?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">March 17, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Several members of crypto twitter have thus responded to the tweet with a summary of their arguments being as follows:<\/p>\n<ul>\n<li>Mr. Brandt is right and the halving has already been priced in.<\/li>\n<li>His method of using trading volume as a measure of supply is wrong.<\/li>\n<\/ul>\n<h2>Why Bitcoin&#8217;s Value Might Not Be Boosted by the Halving<\/h2>\n<p>Whether Mr. Brandt&#8217;s analysis is right or wrong, is a debate that will probably be worthy of a research paper. What we do know is that the world as we know it is coming to terms with the Coronavirus pandemic. As a result, global economies have been hit hard with the Dow, S&amp;P 500 and Oil dropping significantly in the past two weeks. As a result, the United States <a href=\"https:\/\/edition.cnn.com\/2020\/03\/17\/business\/boeing-bailout-trump\/index.html\" rel=\"nofollow noopener\">is considering bailouts<\/a> as well us giving all its citizens <a href=\"https:\/\/www.aljazeera.com\/news\/2020\/03\/trump-money-americans-coronavirus-deaths-hit-100-200318014806025.html\" rel=\"nofollow noopener\">a cash stimulus<\/a> in the coming days.\u00a0Governments all over the world are doing all they can to prevent a recession in their respective economies.<\/p>\n<p>It is with the above global economic environment, that Bitcoin&#8217;s halving might not have the desired effect on the price of BTC. We saw <a href=\"https:\/\/en.ethereumworldnews.com\/news-top-bitcoin-analyst-predicts-btc-could-go-lower-if-recession\/\">in an earlier analysis<\/a>, that the value of BTC might be headed to the mid or high $2,000 levels if there is a confirmed recession.<\/p>\n<h2>Litecoin&#8217;s Halving Last Year, Was Perhaps a Warning for Bitcoin<\/h2>\n<p>It is often said that Litecoin is Bitcoin&#8217;s little brother and LTC might have revealed that the effects of halving events on the value of a coin are dwindling with time. Litecoin&#8217;s last halving was on August 5th, 2019. The coin&#8217;s value peaked on 20th June 2019 at $145. This was approximately 46 days before the event.<\/p>\n<p>Further checking the countdown towards Bitcoin&#8217;s halving, we find that the event is 55 days away. This, in turn, could mean that the halving has already been priced in and we are truly in a bear market.<\/p>\n<p><a href=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/03\/55-Days-till-halving.jpg\"><img class=\"aligncenter\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/03\/55-Days-till-halving.jpg\" alt=\"\" title=\"\"><\/a><\/p>\n<p>(Feature image courtesy of <a href=\"https:\/\/unsplash.com\/@danny_lincoln?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\" rel=\"nofollow noopener\">Daniel Lincoln<\/a>\u00a0on\u00a0Unsplash.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In brief: The current global economic environment is very different from past Bitcoin halving events.\u00a0 The first halving event was on November 28th, 2012; the Second was July 9, 2016; and the Third halving event is estimated to occur around 12th May 2020.\u00a0 Perhaps LTC&#8217;s performance during last year&#8217;s Litecoin halving was a warning sign that Bitcoin&#8217;s value will not go up.\u00a0 A tweet by legendary commodities trader, Peter Brandt, has sparked a lot of debate regarding the upcoming Bitcoin [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":60287,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[800,947,2,27],"tags":[1233,7774,65,7766,1320],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/60736"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=60736"}],"version-history":[{"count":0,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/60736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/60287"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=60736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=60736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=60736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}