As bitcoin nears its much-anticipated block rewards halving, the community keeps getting restless and showing great concerns.
Mixed Reactions Towards The 2020 Bitcoin Halving
While many believe that the 2020 Bitcoin Halving spells another deal of good luck, many others are quite skeptical. These set of people think we should expect more negativity than opportunities after the halving event. This becomes a topic of community concerns in the light of various governmental regulatory measures and the repetition of historical hacks. Other measures that are particularly in consideration are Forks risks and Craig Wright’s bitcoin patent legal proceedings.
According to popular bitcoin developer simply Known as Plan B on Twitter, if all the aforementioned factors including others like the US draconian BTC laws set in, then the next halving event may not turn out as easy and rosy as many expect. Accordingly, in a tweet released on February 18, 2020,
“2020 #bitcoin halving will not be an easy ride:
- US/Mnuchin: draconian anti-btc laws
- Craig Wright: legal & patent FUD
- Hacks: like 2016 halving (DAO, Bitfinex)
- MtGox & PlusToken selling narrative
- Miner death spiral & futures FUD Forks
- Risk vs S2F”
How US Crypto Laws Can Influence Bitcoin Price Come May
He goes contrary to the belief that every block rewards halving has always impacted the price of the coin positively. The popular bitcoin enthusiast has given his opinion, presenting a meaningful argument.
However, the issue of crypto adoption in the United States has proven a hectic and daunting task. Recently, Congressman Bill Foster (D-IL), perhaps one of the best friends cryptos have on the floor of the house, questioned the Chair of the Federal Reserve Jerome H. Powell on U.S’s central bank digital currency (CBDC) progress at a hearing on monetary policy. Meanwhile, the questioning seemed to fall on deaf ears with Jerome who strategically echoed the negative.
U.S. Treasury Secretary Steven Mnuchin gave his testimony on cryptocurrency before the Senate Finance Committee on Wednesday, 12 February 2020. Mnuchin said crypto is a “crucial area” that the Treasury has spent a lot of time on. He also talked about stablecoins and announced that new crypto regulations focusing on transparency will be rolled out soon.
According to him,
“On pure cryptocurrencies like bitcoin, and there are others, we want to make sure these are not equivalents of a secret bank account”
Community Responses To The Observations
Furthermore, the community showed mixed reactions to these observations. This is in line with the multiplicity of beliefs about bitcoin post-halving behavior. However, many believe Plan B might actually be correct while others are arguing the negative.
Nevertheless, other concerns were more critical of this opinion on block rewards halving, indicating bitcoin will perform wonderfully, in a similar manner to previous years halving.