The Bitcoin halving is on everybody’s mind today, and it will be interesting to see how this will affect the ecosystem. Short-term effects are not expected by most people, albeit one never knows what the free market is up to. Various Bitcoin company CEO’s have reached out to us with comments, so let’s see what they have to say.
Bitcoin Experts Comment on the Bitcoin Halving
Whenever a significant milestone in the history of Bitcoin is reached, comments from industry experts are more than welcome. With the help of Wachsman PR, we at The Merkle managed to get our hands on some interesting opinions by prominent people in the Bitcoin space. Although the opinions are somewhat divided, the consensus seems to be there will be no short-term effects.
Agentic Group LLC Founder and Managing Director Rik Willard had the following to say: “I think that, like a stock split, the immediate effect will be a halving of value per Bitcoin. However, unlike a stock split, I think we will see an accelerated vote of confidence in the network reflected as a surge in the price of as much as 10-20%. This could happen within a matter minutes or hours after the halving.”
Quite an interesting point of view to say the least, and many people would love to see such a big Bitcoin price increase. Fermat CEO & Founder Luis Molina sees it as follows: “Over the past month, we have already seen the market react, to some extent, to the Bitcoin halving. The price lift that just occurred indicates a market sentiment that the price will rise as a result of halving.”
Looking on the long-term side of the scale, both gentlemen seem to agree this halving can potentially increase the Bitcoin mining efforts. This will in part be driven by the demand for Bitcoin, now that the supply will continue to grow at a slower rate. Coinsource CEO Sheffield Clark sums it up as follows:
“One could argue that it may breed confidence among larger institutional investors uncomfortable with the arguably loose monetary policies of many central banks today, especially NIRP, and trigger capital inflows to bitcoin due to its track record of stellar year-over-year returns & long-term deflationary nature. Considering quantity of capital tied up in negatively yielding bonds is over $7 trillion, there could quite a bit of long-term upwards pressure to price subsequent to halving, should this confidence take hold.”
This is an exciting time for the Bitcoin community as a whole. The Bitcoin halving of 2016 could be a key moment in the history of cryptocurrency. That being said, the full effects will not be visible until a few months from now. Keep those eyes glued to the price and mining charts, though, as things may change in the blink of an eye.
Image credit 1
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
