Crypto chief executive believes that this key mining factor will drive strong Bitcoin growth
The chief executive of the main cryptocurrency exchange Binance believes that halving or halving Bitcoin is priceless. While reluctant to give a specific target price, Changpeng Zhao is “quite positive,” the next supply shock will result in higher prices.
Zhao believes that the current market is not efficient and that future events, even if they are known in advance, are not necessarily immediately reflected by the price. He also says that reluctance to sell among miners will create an even greater supply / demand imbalance.
Zhao: Bitcoin halving or halving is priceless
One of the hottest debates in cryptocurrency circles at the moment is the reduction of Bitcoin by half and its potential impact on the price. The halving will make Bitcoin numbers rewarded for miners fall from 12.5 to 6.25.
As NewsBTC has previously reported, some believe that halving has a “price.” They reason that the knowledge of the event has been public during the time that Bitcoin has existed. Satoshi Nakamoto detailed the halving schedule in the Bitcoin technical document. Therefore, buyers and sellers have presumably had many opportunities to make their movements now.
Others believe that the market does not behave so efficiently. Changpeng Zhao, Binance’s CEO, is among them.
In a recent interview with BlockTV, Zhao gave his opinion on halving or halving:
“Personally, I think the halving has not been put at a fair price. Humans take a long time to let concepts sink.”
After acknowledging that the price of Bitcoin had skyrocketed after the previous two halvings, Zhao said the event would have a psychological impact on the miners.
The cost of producing a single Bitcoin will double, at least in the short term. Zhao believes that miners will be very reluctant to sell at a price below cost and this will likely have a positive impact on the price of Bitcoin.
He added that the demand for Bitcoin seemed to be increasing at a time when the new offer is expected to decrease suddenly. The basic economy suggests that this should result in Bitcoin earnings.
When asked directly about his outlook for the post-half or halving era, Zhao said:
“I am quite positive.”
Has Blockchain already found its killer application?
In another part of the interview, Zhao states that blockchain could have found its killer application. For him, technology has the potential to really change the world in terms of collective financing.
However, it does not refer to initial coin offerings, the method by which Binance financed its own launch. Instead, Zhao foresees global projects outside the scope of financing of a single national government that uses technology. Give examples of deep space travel and important medical research.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.