Changpeng Zhao, the founder and CEO of major crypto-exchange Binance, suggested that the price of Bitcoin (BTC) has not yet been adjusted to halve the upcoming block pay.
Zhao suggested that the Bitcoin price in the future will see more upward movement during a February interview. 20.
The CEO explained that historically halving Bitcoin’s block rewards had a positive impact on the price of the currency. Although he admitted that historical events do not necessarily predict future events, he noted that miners have to spend nearly twice as much to extract a single coin.
Zhao noted that the price of an asset is determined by demand, not production costs, but expects miners to be unwilling to sell below the production price.
Moreover, Zhao said that another consequence of a lower Bitcoin block pay is less inflation, which should also help the price increase. He noted that the effects of lower coin production will be enhanced by an increasing number of users in space, which state:
“The demand side is increasing, the supply side is falling.”
However, Zhao also explained that he expects there will be a resistance that will keep Bitcoin’s price around $ 10,000 for some time, saying: “There are psychological barriers around nice round numbers. So 10,000 is a very nice round number, so […] the price will fluctuate back and forth. “