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- Joseph Young claimed that the halving of Bitcoin getting priced in or not is not very important.
- According to Young, Bitcoin has five essential features that ensure that the value will only rise.
- People would be trying to mine more Bitcoin while the reward remains high.
In a tweet on 3rd February, Cryptocurrency analyst, Joseph Young claimed that the halving of Bitcoin getting priced in or not is not very important.
Whether bitcoin halving is priced in or not isn't so important in my opinion.
It's literally the most important event that affects the supply of an asset whose main value proposition revolves around supply and scarcity.
It's a long-term positve and that's the key.
— Joseph Young (@iamjosephyoung) February 3, 2020
However, it is the most important phenomenon that will affect the supply of a commodity whose main value depends on supply and demand. In the long term, it will be positive, and that’s more important.
The actual tweet reads,
“Whether bitcoin halving is priced in or not isn’t so important, in my opinion. It’s the most important event that affects the supply of an asset whose main value proposition revolves around supply and scarcity. It’s a long-term positive, and that’s the key.”
In one of his articles, he talked about Bitcoin’s price rising by 45% in the past 45 days. In normal circumstances, this kind of rise usually followed by a drop. However, According to Young, Bitcoin has five essential features that ensure that the value will only rise.
Two such features are lower time frame sell absorption and higher time frame bullish structure. Over the past month and a half, the rate of Bitcoin is increasing at a rapid pace. The upsurge started in December 2019, and it has been growing with only minor pullbacks.
On a lower time frame, large Bitcoin sell orders are getting absorbed readily and dip bought at a fast rate. Now, coming to the fact regarding the halving of Bitcoin, which scheduled in May 2020.
People would be trying to mine more Bitcoin while the reward remains high. This increase in demand for Bitcoin would only increase the value as time goes by.
So, as Joseph Young suggests, the fact that Bitcoin halving is around the corner isn’t directly responsible for the growth in Bitcoin value. It’s the scarcity caused by the halving that is responsible for the rise.
In the end, the halving is going to have a positive effect on Bitcoin, and that is more important for the investors.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
