In less than six months\u2019 time, Bitcoin will see an extremely important event. Known as a \u201chalving\u201d or \u201chalvening,\u201d the number of coins issued per block to miners will get cut in half from 12.5 to 6.25, effectively meaning that BTC\u2019s inflation rate will be cut in half in layman\u2019s terms.<\/p>\n
The halving mechanism, should it be kept in the code in the decades to come, will ensure that there will only be 21 million\u00a0Bitcoin<\/a>\u00a0in existence. Ever. This ties into Satoshi Nakamoto\u2019s seeming obsession with creating a scarce, hard form of money that is unlike fiat money, which can be printed without limits.<\/p>\n While some are skeptical of the event’s effects on the BTC market, a leading investor in the cryptocurrency industry asserted that there is no way that the halving is priced in.<\/p>\n The investor, Alistair Milne of Altana Digital Currency Fund. Milne recently noted<\/a> that after the halving comes into effect in 2020, 50% of all newly mined Bitcoin will be absorbed by the purchases of clients of two companies: Grayscale through its Bitcoin Trust and Square through its BTC buying service. This ignores the inflows from Coinbase customers, people buying cryptocurrency through RobinHood and eToro, and so on and so forth.<\/p>\n In other words, should demand persist or grow, the halving will only boost the supply-demand economics model for BTC, pushing prices higher with ample time.<\/p>\n After halving, ~50% of all newly mined Bitcoin will be absorbed by just two companies: GBTC and Square<\/p>\n This ignores the 30million Coinbase customers, people investing via RobinHood, eToro, etc. etc<\/p>\n … but tell me again how halving is priced in.<\/p>\n — Alistair Milne (@alistairmilne) December 21, 2019<\/a><\/p><\/blockquote>\nBitcoin Halving to be Decidiely Positive<\/strong><\/h2>\n
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