Key Points
- Strike CEO, Jack Mallers, predicts Bitcoin’s value will increase post-halving due to its scarcity.
- Mallers also highlights the appeal of Bitcoin as a hedge against inflation and the dilution of centrally controlled currencies.
Bitcoin’s Value Expected to Rise Post-Halving
Bitcoin [BTC] has shown resilience, reclaiming the $70,000 mark on the 25th of March despite a week of dips and drops.
As the halving draws near, experts predict further price appreciation. Jack Mallers, CEO of Strike, in an interview with Bloomberg, shared his insights. He stated, “Bitcoin is on a fixed issuance schedule…if demand remains the same and the Bitcoin sold gets cut in half, it should have an impact on the price to the upside.”
Bitcoin’s Scarcity and Appeal
Mallers also addressed concerns about the network’s future sustainability. He pointed to transaction fees as a viable source of income, noting that blocks have recently garnered more fees for miners than the actual block reward.
He emphasized the auto-adjusting protocol that manages the difficulty based on total mining power, affirming that the network is built to sustain itself. This aligns with Satoshi Nakamoto’s original vision of transaction fees being the primary source of revenue.
Mallers criticized the government’s control over money, arguing that the ability to print more fiat currency has led to inflation and devaluation. He commented, “They can make more real estate. They can find more gold. They can’t make any more Bitcoins…access to Bitcoin is paramount. It’s a killer use case because it’s the only thing that no one on the planet can create more of.”
He suggested that Bitcoin’s scarcity makes it an attractive hedge against the inflationary tendencies of centrally controlled currencies. However, he also acknowledged that the king coin can be intimidating for many individuals, making it less attractive to those averse to volatility.
Despite this, Mallers pointed to stablecoins as the other preferred asset, describing them as ‘IOUs for bank deposits.’ He concluded, “Bitcoin is the only neutral value transfer protocol for the world.”
