Litecoin Founder Says 2020’s Halving Remains No Effect on Bitcoin Price
As the next Bitcoin halving is less than 500 days away, the crypto community at large is speculating about its impact on the price. Some crypto investors even believe the next halving will trigger the next bull-run.
However, Charlie Lee, the founder of Litecoin stated that the Bitcoin (BTC) and Litecoin (LTC) prices will not be affected by the upcoming block halving.
According to The Halving, the next Bitcoin block halving will occur in May 2020 when block 630,000 is mined.
Initially, the block reward was 50 Bitcoins, and since then, this has been halved twice, to 25 Bitcoins and currently 12.5 Bitcoins. By the time of the next halving, block reward will decrease to 6.25 Bitcoins.
The speculation that the halving will reduce the Bitcoin inflation and therefore lead to a higher price, is mainly based on the price rise during 2013.
At that time, the amount of annually mined Bitcoin decreased from 2.628 million to 1.314 million when the halving occurs. The price of Bitcoin was $9.5 one month before the halving, however, a big Bitcoin rally took place afterward and the price raised up to $1,160 in November 2013, one year after the halving.
In this regard, Lee holds the opposite opinion. In an interview with Ambcrypto, he said that the block halving has no direct correlation with the price. He mentioned last halving and indicated that last having had little effect on the prices of Litecoin.
Moreover, he also added that there may be a “self-fulfilling prophecy” which would promote the buying behavior if most of them believe the halving will push price upwards, and hence increased the prices.
“There’s a small potential where miners could be not selling when the having happens so if the miners believe in the coin, in their mining the coin at potentially in loss, after the halving they would still mine and not sell, in that remove some selling pressure on the market which helps the price.
So that could help the price a little bit but other than that I don’t think it has a huge effect on the price,” said Lee.