The demand and supply dynamics of Bitcoin are constant, according to Bitwise Asset Management COO, Teddy Fusaro.
Fusaro, who spoke to Cheddar about Bitcoin’s upcoming halving slated for May 2020, said that he was optimistic that the impact that the halving would have on the price of Bitcoin would likely be the 2020 “topic du jour.” He noted that the conversation would continue to intensify as the year 2020 approaches.
When asked how the change in supply would affect BTC prices, he explained that at the prevailing rates, Bitcoin miners are able to mine between $5 and $6 billion worth of bitcoins per year. This means that it is difficult to state how reducing the BTC inflow would affect its prices going forward.
He was also quick to add that while it may be difficult to predict what would happen in the future, one could always look at the history to gain some insight.
Changes to Expect in the Crypto Community
When you look at the crypto space as a whole, without focusing on Bitcoin, it’s expected that 7 out of the 10 largest crypto assets, based on their market caps, would notice some significant changes in the new year.
“This is more than an event — this is a narrative of what’s happening with this technology.”
The Bitwise COO further observed how halving BTC had affected its prices in the last few years, noting that in 2012, BTC was trading at $16 before its first halving. In 2016, the crypto asset was trading at a high of $650 before halving took place.
In his point of view:
“That’s the historical analog we have to think about what could happen here. It’s going to be interesting to see how this dynamic becomes a part of the dialogue moving into the new year.”
What to Expect in 2020
While halving has often led to a price increase in the past, crypto enthusiasts should not expect the same case to repeat itself. Fusaro noted that many organizations have shifted to the crypto space, and many enthusiasts are hopeful that the prices will rise. However, this is likely to change how BTC prices will react to the change in supply.
The reality is that blockchain technology and Bitcoin have contributed to many changes. But, despite all this, it’s still not possible for them to change the demand and supply dynamics, especially when it comes to price-setting markets.
Featured image: The Crypto Network