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Has Bitcoin's May "halvening" been a case of less is more?
Well, the much-anticipated halvening has come and gone. Frankly, it turned out be a bit of a damp squib multiplied by a storm in a teacup. Basically, this halvening was, as they say, much ado about nothing.
Mind you, that's actually a good thing. What Bitcoin doesn't need is more volatility. Yes, we did see a couple of wobbles right before and right after the actual halvening took place, but in view of Bitcoin's natural proclivity for hefty gyrations, that was peanuts.
The other good news is that, the Covid-inspired March crash notwithstanding, this year has been shaping up to be quite a happening year for Bitcoin. In fact, as far as Bitcoin is concerned, things are going just swimmingly.
For instance, in July, the OCC, the US Office of the Comptroller of the Currency, granted approval to federal banks to provide Bitcoin custody. This is a major deal, not only because, for one thing, it further legitimises Bitcoin, but also, with regular banks including Bitcoin-related services going forward, the King of Coins will become available to a much, much, much larger audience.
In a nutshell, gone are the days of needing to find a Bitcoin exchange from scratch and having to jump through countless KYC and AML hoops to open a Bitcoin account. Now, since your bank already knows you, you meet all the KYC/AML requirements right off the bat. Better still, you know your bank too. Bottom line: there are no confidence issues either way. Mark my words, this OCC announcement will result in a serious leap forward for Bitcoin ownership, for Bitcoin's value and, ultimately, for the entire Bitcoin ecosystem.
Better still, since this new development clearly increases Bitcoin's tailwind considerably, any retroactive attempt by the authorities to rein in crypto is henceforth instantly rendered that much less likely.
And, as it happens, in view of Bitcoin's bullish bias, it's clear there's a great deal of agreement on this point. In fact, as of the current month, August, Bitcoin has, once again, turned in the best performance of all asset classes, beating the precious metals and even the FAANG gang.
Then again, unlike previous bull runs, this time around Bitcoin's appreciation has been less manic, more evenly-paced. This could very well be courtesy a few forward-thinking Bitcoin whales. After all, it was whales that were observed shifting a fair amount of their stash from cold storage to several exchanges earlier this year.
Why is this considered forward-thinking? Because these crafty whales know that in order for Bitcoin to reach its full potential, its coins need to be distributed far and wide. Sure, whales putting up their inventory as a drip-feed may dampen Bitcoin's value short-term. But we should remember that this, eliminating local Bitcoin stockpiles, is a rite of passage, a prerequisite for Bitcoin to reach 6 figures and beyond.
Besides, barring a few minor troughs and peaks, the pace of Bitcoin's appreciation has been nice and steady for several months now. Just the kind of thing that makes a safe haven just that, a safe haven.
Speaking of "safe haven", another very big deal was MicroStrategy, a listed company no less, buying more than 20,000 Bitcoins recently. They're obviously giving Bitcoin's safe haven narrative a big nod here. First Paul Tudor Jones, then MicroStrategy. Who's next?
So yes, to answer the question at the top of this piece, Bitcoin's halvening has most definitively been a case of less is more.
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Disclaimer
I wrote the above article myself and it expresses my own personal opinions and views on Bitcoin. I am unable to guarantee that the information and/or results will be correct. Furthermore, whilst I own some cryptocurrencies, I do not receive compensation for my writing and I have no business relationship with any of the companies mentioned in above article. In addition, I am not an investment advisor and above article is for purely informational purposes. Investors are advised to personally undertake adequate due diligence, or to consult a financial advisor in order to determine what assets - if any - are appropriate to invest in.
Bryan
Bryan, a Singapore PR, has spent two separate stints in Singapore, spanning close to two decades. As is the case for most non-techies, although Bryan's first exposure to Bitcoin was around 2010, it wasn't love at first sight. However, Bitcoin's impressive resilience, meteoric rise and world-changing potential have converted Bryan, to the extent that he has now pivoted to fully commit to Bitcoin.
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