- Factor LLC CEO Peter Brandt feels that the impact of block reward halving is not as relevant for BTC’s price as most people believe it is.
- He equated Bitcoin’s daily trading volume to its real supply, which was disputed by many on Twitter.
Peter Brandt, the CEO of global trading firm Factor LLC, has recently explained why he believes the impact of block reward halving on BTC’s price is actually not as relevant as most people think it is. On March 17, he tweeted that he considers Bitcoin’s daily trading volume to be its real supply. Therefore, the daily reduction of mined Bitcoins is equal to about 2/100th of 1% of the actual supply.
The trader concluded that the reduction of new supply caused by halving is “chump change” when considered as a percentage of the real Bitcoin supply. However, several people questioned the logic behind Brandt’s theory.
A Twitter user said that, as per Brandt’s explanation, if he and his friend purchased and sold one BTC 21 million times, then they would be holding Bitcoin’s entire supply of 21 million BTC. Another Twitter user went on to explain why he thinks miners are much relevant:
Miners are the largest pool of daily sellers my friend. They lose 50% of their daily ability supply to sell. Less sellers with same or growing demand from buyers helps price appreciate.
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