Could Bitcoin halving affect position as safe-haven asset, medium-of-exchange, or investment tool?
Bitcoin has garnered more attention in recent times with the upcoming halving. Many leading voices in the industry have shared their thoughts on Bitcoin’s performance recently as the coin underwent a few ups and downs. Trace Mayer, the host of The Bitcoin Knowledge Podcast, is the latest one to comment on Bitcoin’s performance.
Elaborating how Bitcoin is helping people get through situations where government-issued currency becomes unusable, he stated that Bitcoin giving people the power of holding their own keys, running their own private node, and basically being in control of their own money. He stated,
“Money is important and the way human mind interacts with it, it can stir up a lot of strong emotions like fear. Bitcoin is just such a powerful tool for being able to get that part of your life under control.”
Apart from Mayer’s comments, there have also been a lot of other public opinions on whether Bitcoin works best as a safe-haven asset, a medium of exchange, or as an investment tool. When asked about Bitcoin’s position with regard to these functionalities and how the halving event would affect it, Mayer said that Bitcoin’s price would rise after the halving, following the same pattern after previous halvings.
Mayer went on to talk about factors people were curious about post halving,
“People don’t care what the price of Bitcoin is. They care what the price of the transaction fees are. When we have that reduction in the saleable supply of Bitcoin post halving, and saleable supply of new Bitcoin, that’s where I think we start getting price crunch to happen as that filters through in the market, readjust to the new equilibrium of the flows of the coins.
Mayer was also asked as to what his thoughts were on the king coin’s price by the end of this decade. Responding to this question, Mayer stated that Bitcoin was aiming for a six-figure price by the end of 2021.
“By 2030, there’s going to be the best analytical work. Let’s look at the quantitative work and that would be plan B cause we’ve got cointegrated correlated data and considering where this thing is going and how fast it’s going, this is all really just cointegrated, correlated data.”