Today’s macroeconomic environment continues to reinforce that a scarce, digital, non-sovereign form of money may be an attractive place to store value and may serve as a hedge against unrestrained money printing.
While central banks are beginning to enact unlimited quantitative easing, Bitcoin will soon undergo a quantitative tightening, as the third Bitcoin halving event takes place in May 2020.
As a reminder, after a halving event the amount of newly issued Bitcoin gets cut in half. While the short-term implications of the halving are unclear, it has historically served as a focal point for the investment community.
Miners are the Bitcoin market’s natural sellers and after the halving, they will have half as much to sell. The imbalance between increasing demand and shrinking supply may serve as a positive catalyst for Bitcoin’s price.
