With the Bitcoin Halving now expected imminently, Nexo’s co-founder and managing partner Antoni Trenchev joined Bloomberg Markets: European Open anchors Matt Miller and Anna Edwards to discuss what lies ahead for Bitcoin after the halving.
Bitcoin shows great resilience to the economic volatility spurred by the COVID-19 pandemic thanks to its “quantitative hardening” mechanism as against central banks’ quantitative easing programs.
Central banks pumped a fresh $8 trillion of cash over the past two months, but like gold, Bitcoin’s provable scarcity gives investors protection against inflationary pressures.
Bitcoin’s fundamentals are stronger than ever — leveraging its gold-like qualities, it will continue its upward trend to reach $50,000 by the end of 2020.
Traders and investors should not be concerned about the daily fluctuations of Bitcoin, but remain focused on the big picture — Bitcoin is the best performing asset in the past 10 years аnd the only free market at play now.
Around the halving, Nexo is seeing an influx of individual and institutional clients alike looking to borrow against their Bitcoin to take advantage of the lower prices and invest further.
Miners are specifically approaching Nexo to help cover production costs without selling their Bitcoins.