- Alex Saunders, CEO & Founder of Nuggets News AU called out the critics of Bitcoin.
- Efficient Market Hypothesis states that the price of an asset present in a financial market is a reflection of all the available information regarding that asset.
In a recent tweet, Alex Saunders, CEO & Founder of Nuggets News AU called out the critics of Bitcoin, who were claiming that halving won’t pump Bitcoin because of the Efficient Market Hypothesis.
To the critics saying the halving won't pump #Bitcoin because Efficient Market Hypothesis prices in all known information. Explain to me how the most analysed stock in the world can be repriced 400% in 6 months? I promise you #BTC can do 400% in 6 months too… ??? $TSLA $BTC pic.twitter.com/eXgO1qIKHQ
— Alex Saunders (@AlexSaundersAU) February 4, 2020
Efficient Market Hypothesis states that the price of an asset present in a financial market is a reflection of all the available information regarding that asset. It means that governments cannot improve the policy of allocating investment of those assets with the maximum returns, which could achieve by letting the private capital market make the investment plans.
By this hypothesis, Bitcoin has no inherent value and a record of meaningless calculations. It means that they are worthless as a currency and are being marketed based on their scarcity.
However, if we think for a moment that Bitcoin is worthless, then the financial market should ideally put its price as zero. But the opposite has happened, and Bitcoin prices are soaring. Even at times, when the market goes down, the Bitcoins still don’t become worthless.
Another problem with this theory is that some people suggest Bitcoin considered valuable because people believe so. If we consider this to be fact, then commodities like Gold are also valuable because people think so.
Based on these facts, Alex Saunders is saying that people who think that Bitcoin can’t rise in value by 400% in the next six months as the Efficient Market Hypothesis predicts anything above 200% is unlikely are wrong. He believes that Bitcoin will continue to grow and teach the new high with time.