JPMorgan Expects Retail Demand for Bitcoin to Remain Strong as Reward Halving Approaches
By Landon Manning
In anticipation of the next halving event for Bitcoin, researchers from JPMorgan have declared their belief that the underlying asset will remain strong.
An integral component of Bitcoins long-term viability is the cap on the volume of coins that can be mined. There will only ever be 21 million bitcoin and there is a gradualtaperfrom the early days of extremely easy mining to a tiny crawl by the very end of bitcoin minings lifespan. The mechanism for this gradual taper takes the form of the halving event, when certain passed milestones in bitcoin mined will automatically cut all mining rewards in half. In other words, the same amount of equipment and electricity will create half as many assets as it had a day before. The next halving is about a year away.
This event has happened twice in Bitcoins past, and according to researchpublishedin June by JPMorgan, the last two halvings led to a rally in bitcoins price. The 2024 halving seems well on track to continue this trend, as the report claims that a halving would mechanically double bitcoin production cost to around $40,000, creating a positive psychological effect.