Bitcoin
Pantera Capital Sheds Light on Bitcoin’s Upcoming Halving and Its Potential Market Impact
In the latest issue of Pantera Capital’s “Blockchain Letter,” the crypto-focused investment firm examined the intricacies of Bitcoin’s upcoming halving event, which is expected in April 2024. Authored by Dan Morehead, Paul Veradittakit, Matt Stephenson, and Andrew Harris, the newsletter provided a comprehensive look at the mechanics and potential market impact of this significant event in Bitcoin’s lifecycle.
The firm emphasizes that Bitcoin’s monetary policy is fundamentally different from traditional Quantitative Easing methods. According to the Bitcoin protocol, only 21 million coins will ever exist, and the issuance rate of new coins is designed to decrease over time. Currently, 6.25 bitcoins are generated every ten minutes, a number that will be halved to 3.125 BTC per block post-halving.
The firm points out that Bitcoin’s supply mechanism is rooted in mathematical predictability, making it transparent by design. This is in stark contrast to traditional financial systems, which can be influenced by political powers. Pantera Capital cites Efficient Markets Theory to suggest that even though the halving is a well-known event, it doesn’t mean there isn’t significant profit potential. The firm refers to Warren Buffet’s views on market efficiency to underline this point.
In the latest issue of Pantera Capital’s “Blockchain Letter,” the crypto-focused investment firm examined the intricacies of Bitcoin’s upcoming halving event, which is expected in April 2024. Authored by Dan Morehead, Paul Veradittakit, Matt Stephenson, and Andrew Harris, the newsletter provided a comprehensive look at the mechanics and potential market impact of this significant event in Bitcoin’s lifecycle.
The firm emphasizes that Bitcoin’s monetary policy is fundamentally different from traditional Quantitative Easing methods. According to the Bitcoin protocol, only 21 million coins will ever exist, and the issuance rate of new coins is designed to decrease over time. Currently, 6.25 bitcoins are generated every ten minutes, a number that will be halved to 3.125 BTC per block post-halving.
The firm points out that Bitcoin’s supply mechanism is rooted in mathematical predictability, making it transparent by design. This is in stark contrast to traditional financial systems, which can be influenced by political powers. Pantera Capital cites Efficient Markets Theory to suggest that even though the halving is a well-known event, it doesn’t mean there isn’t significant profit potential. The firm refers to Warren Buffet’s views on market efficiency to underline this point.
