Countdown to the halving
Bitcoin has carved out, within the horizon of traditional assets, a space in which it can grow despite constant inflation and macroeconomic scenarios always in the balance.
This derives primarily from its “shortage” intrinsic, which also thanks to the halving allows BTC to also become an instrument of “savings” in the long term as a replacement for many traditional assets such as gold.
We have already talked a lot and in depth about the upcoming event in recent days. The “halving” will reduce block rewards for miners from 6.25 BTC to 3.125 BTCand this dynamic is expected to push the price action higher again as in past cycles.
The whole matter, however, takes on a much more significant character when compared to what characterizes today’s markets.
Joe Burnettresearcher of Unchainedfor example, highlighted in a recent report how the modern economic environment is an “innovation trap”, in which devaluation of assets involves every type of technological progress with the sole exception of Bitcoin.
“In a world of abundance, hyperproductivity and highly competitive markets, storing a significant wealth outside of Bitcoin it’s going to get harder and harder,” Burnett said.
BTC increasingly a store of value
The devaluation of the assets in question primarily concerns currencies fiat, actions And properties. The dollari Treasury bondsbut also gold And silver, despite a historical reputation for stable stores of value. According to Burnett, gold itself will soon face a devaluation resulting from the greater “productivity of the extraction of gold from the oceans, in which it is estimated that there is gold worth 70 times the current circulating supply”.
The decrease in traditional investment returns, as a result, will push Bitcoin even further, especially suited to be one savings tool in a hypercompetitive economy.
In the immediate future, the decline in the supply of Bitcoin generated by the halving may instead generate a sudden decrease in selling pressurepotentially leading to a significant price increase.
One of the most relevant variables compared to the past is instead represented by investor mix, with ETFs attracting institutional capital flows. Therefore, if new bearish scenarios are not excluded, the bullish ones seem to have an even greater upside potential.
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Tags: Bitcoin halving deflationary challenge BTC
