Famous for being a staunch optimist about Bitcoin, Mike Novogratz welcomes the current BTC halving
At block # 630,000, the reward for mining a block on the Bitcoin network has decreased from 12.5 BTC to 6.25 BTC, completing its third successful halving. The “halving” event, as it is known in crypto circles, sparked a frenzy of bullish sentiments in the middle, including legendary hedge fund manager Paul Tudor Jones and famous Bitcoin perma Bull Mike Novogratz, who spoke to CNN on Tuesday.
Bitcoin halving is a quantitative squeeze
Bitcoin supply cuts every 210,000 blocks are “all about selling pressure,” according to Mike. With miners with fewer coins to sell on the market (assuming miners sell their entire BTC), the supply will also be reduced.
In light of recent expansionary monetary policies established by governments around the world due to the COVID-19 pandemic, BTC offers unrelated and more secure options during these times. We can describe current halving as a polar opposite to the Fed’s governments and quantitative easing (QE) policies.
“We have QE on top of QE and not just here in the US, but globally. You have that exclamation point in the history of what makes a scarce asset and what a scanty monetary system is, in contrast to what the Fed is doing, ”said Novogratz. “On the other hand, halving is really a quantitative squeeze.”
“It’s the perfect time for Bitcoin”
The growing policy of monetary easing accelerated when the US government started buying electronically traded funds (ETFs) for the first time in an attempt to keep markets alive. Global monetary impression and quantitative easing defend the main cryptocurrency, given its solid monetary policy.
Paul Tudor Jones, billionaire hedge fund manager – worth more than $ 5.3 billion – recently revealed that he puts 1 to 2 percent of his assets in BTC as a diversification asset. Novogratz says the current challenges in the monetary system present an opportune time for investors to keep Bitcoin as a safe haven in part of their portfolio.
“It is the perfect time for a macro story in which people think they should have about 1 to 2% of the portfolio in Bitcoin. Because the possibility that things will go really bad with the fiat currency system is increasing. ”