With the third bitcoin halving less 3 days away, the hype has definitely surged, especially with Bitcoin sounding the $10,000 bell. Touching this level has, in a way, instilled confidence in a huge part of the community. The third halving is nothing short of incredible, especially with the price dropping from $9,000 to $3,000 range and then surging back to the $10,000 level. The price is not the only aspect of Bitcoin to have undergone a massive shift, the fundamentals have too.
Bitcoin as an asset has grown over the years. In particular, it has grown more in the last 3 years than it did in the last 8 years. It has gained widespread prominence and adoption with complex innovative products being built on top of it. Bitcoin’s moment of “fine-tuning” is it coming out of a recession-infested-economy unscathed.
Yes, the “Black Thursday” was a moment, however, BTC has recovered to original levels and even surpassed it while other assets are struggling. This is mainly due to the bolstering of BTC’s fundamentals and the last two halvings have had a fair share of involvement in it. Additionally, the third halving will be the first step in the evolution of Bitcoin as an asset class like no other.
The important thing here is that the economic landscape that we knew doesn’t exist anymore. With the printing of trillions of US dollars and other unseen monetary policies, there is a need for a new asset class. Although gold is a safe haven asset that would definitely surge post-pandemic, most assets will not recognize the new normal.
According to Paul Tudor Jones, the founder of Tudor Investment Corporation and a macro investor stated in his letter about the “The Great Monetary Inflation” that will hit the shore. In it, he described his decision to step into the Bitcoin ecosystem. He explained that Bitcoin’s “quintessence of scarcity premium” is what’s driving his decision to own BTC. He added,
“It is literally the only large tradeable asset in the world that has a known fixed maximum supply
With Bitcoin’s price hitting $10,000, 3 days before the halving, BTC is exhibiting its phenomenal capabilities to rise under pressure. Hence, Bitcoin’s 3rd halving will be its evolution and what comes after that will be an asset class, with S2fF higher than that of gold and a safe haven asset that will act as a hedge against rampant inflation and other monetary policies.