March 6, 2021

Cryptheory

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Peter Brandt: The impact of halving on Bitcoin is overestimated

2 min read
Peter Brandt: The impact of halving on Bitcoin is overestimated

Famous trader Peter Brandt explained why he is convinced that the impact of the block reward halving is less relevant for Bitcoin’s (BTC) price than most believe.

 

Brandt explained that he considers the daily trading volume of Bitcoin to be its real supply. Because of this, he believes that the daily reduction of mined Bitcoins is equivalent to about 2/100th of 1% of the real supply. 

 

Brandt concluded that the reduction of new supply due to halving is “chump change” when considered as a percentage of the real Bitcoin supply. Still, some Twitter users questioned the logic behind those tweets.

 

 

One Twitter user pointed out a flaw in considering Bitcoin’s daily trading volume as its real supply. He explained that — according to Brandt’s logic — if he and a friend of his bought and sold 1 BTC 21 million times then they would be holding Bitcoin’s entire supply of 21 million BTC.

 

 

Another user explained why he believes miners to be much more relevant.

 

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