by Karin Chang
7 months ago
Changpeng Zhao (CZ), CEO of the world’s largest cryptocurrency exchange by trading volume, Binance, has made a rare price prediction recently when he forecast “the bitcoin price will likely increase.”
“I personally believe the halving has not been priced in,” CZ reportedly said to BlockTV, adding he doesn’t normally give market predictions because he will be wrong 50% of the time.
Bitcoin traders and investors have begun gearing up for the bitcoin halving event in May, when new bitcoin blocks are scheduled to drop from 12.5 bitcoin to 6.25 bitcoin – trimming the supply into the market by half.
There have been two bitcoin halvings in the past. Bitcoin halvings are scheduled to continue once every four years, until the maximum supply of 21 million bitcoins has been generated by the network.
Many are hoping the 2020 bitcoin halving will see a repeat of the last cut to supply. In 2016, bitcoin prices doubled and soared by 13-fold the following year.
However, CZ cautioned that “historic events do not predict future events, so don’t take that too literally.” He explained bitcoin halving will mean it will cost miners almost double what it does now to produce one bitcoin. Psychologically, those miners won’t be willing to sell below that price.
“New bitcoin coming to market will be severely limited and at the same time we’re seeing more users and traders coming in,” he added.
CZ concluded that although economic theory indicates bitcoin price will likely increase, it remains theory. The bitcoin price is hard to predict.