Just before the highly anticipated Bitcoin halving, Changpeng “CZ” Zhao, the founder and former CEO of Binance, clarified that it would not have the same impact on supply as stock splits. Zhao made this clarification in response to common misconceptions surrounding the event, which is now less than 100 blocks away. The halving is expected to affect BTC’s mining rewards and availability.
Zhao referred back to a post from last October, where he announced that Binance would be adding a new page dedicated to the Bitcoin halving. In his recent statement, he addressed a question from a cryptocurrency enthusiast about whether the Bitcoin halving is similar to a stock split. He emphasized that they are not comparable, explaining that investors in the Bitcoin market are still early. The key difference is that the halving does not increase the number of coins, but rather decreases the rate at which new Bitcoin tokens are introduced.
For those unfamiliar, a stock split is a corporate event where a company divides its existing shares, effectively increasing the number of shares available. While both a stock split and the Bitcoin halving involve changes in supply and inflation rate, they serve different purposes.
Zhao also shared insights from the past three halving events, noting that Bitcoin’s price has historically experienced a gradual increase following each halving. However, he cautioned that past trends do not guarantee future results and urged the community to manage their expectations.
Experts like Samson Mow and Anthony Pompliano view the upcoming Bitcoin halving as a catalyst for a potential price increase. They believe that the event will create a supply shock as the rate of new Bitcoin being created is halved, leading to reduced availability. Additionally, the recent approval of spot Bitcoin ETFs has sparked a demand shock, with these funds acquiring more Bitcoin than miners produce daily. Mow predicts that the combination of supply and demand dynamics could result in a significant price surge, potentially pushing Bitcoin’s value to new record highs.
As of now, Bitcoin has seen a 4.76% increase in the past 24 hours, currently valued at $64,668. This rise has not gone unnoticed, as trading volume has surged by 21% in a single day, reaching $51,102,430,740.
Disclaimer: This article provides informational content and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses.
