Post-halving Bitcoin prices: ‘Ignore the noise,’ exec advises, as…

  • Bitcoin’s recent volatility sparks debate over its investment potential.
  • The impact of halving on revenue underscores the need for efficient resource management.

As the Bitcoin [BTC] halving countdown begins, hearts are all pumped to see what happens next.

Without repeating myself, every halving event is distinct, but it appears that the fourth one is showing some resemblance to patterns we’ve seen before.

Based on information from CoinMarketCap, the primary cryptocurrency currently shows a downtrend on its daily and weekly price graphs. This pattern is typically seen prior to a halving event.

What’s behind Bitcoin’s volatility?

In a talk with CNBC, Anthony Pompliano, the founder and partner at Pomp Investments, shared insights on Bitcoin’s current price fluctuations.

“The price of Bitcoin has dropped to $64,000 after a remarkable run-up over the past four years. Following the last halving, we’ve seen an impressive gain of around 800%.”

Let’s delve deeper into our discussion and examine Bitcoin (BTC) in relation to the classic asset, gold. To add more context, according to Pompliano,

In the current year so far, Bitcoin has experienced a rise of approximately 40%. Contrastingly, gold has seen a smaller increase of around 7% during this same period. Over the past five years, Bitcoin’s growth has been more moderate at roughly 11%.

Using clear and simple language, Pompliano points out that gold’s value in buying power has decreased significantly over the past five years, raising doubts about its ability to serve as an effective inflation hedge compared to Bitcoin.

In contrast to Pompliano’s opinion, Peter Schiff, in his recent X (Formerly Twitter) post noted, 

“The current value of Bitcoin is less than 26 ounces, or approximately one kilogram, of gold. This represents a significant drop of around 30% compared to its previous all-time high reached about 2.5 years ago.”

The various perspectives on Bitcoin’s role in the worldwide financial scene highlight the continued dispute among experts.

How should miners proceed with Bitcoin halving? 

Furthermore, Greg Beard, CEO of Stronghold Digital Mining, shared insights from miners’ viewpoint about the approaching Bitcoin halving event and its potential effects on their businesses.

“The rewards you receive each day will be reduced by half, meaning your income from this source will drop from 900 coins to 450 coins.”

He added, 

It’s possible that fewer individuals may be vying for the rewards, leading to a higher overall hash rate.

Effective use of resources and cost control are essential for miners to stay ahead in the constantly changing world of cryptocurrencies.

Way forward

Although there may be risks involved, Pompliano remains optimistic about Bitcoin’s future prospects. He points to decreasing price fluctuations as evidence that the market is growing up. Furthermore, he anticipates only minimal downside risk and a significant price increase in the next year.

“Ignore the noise of short-term price movements.” 

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2024-04-18 13:11