Quantitative Tightening
I saw this tweet a few days ago and thought “that’s clever”:
On or about May 12th, Bitcoin will go through its third “halvening” in which the rewards for mining bitocin will be cut in half. This will reduce the “inflation rate” of new bitcoins being mined and will also change the economics of mining bitcoin.
In the past, halvenings have been bullish for the price of Bitcoin over the medium to long term, but there is no guarantee it will play out that way this time. There are a bunch of impacts to the Bitcoin ecosystem of a halvening and the past is certainly not a predictor of the future.
However, as the Grayscale tweet above points out, there is a stark contrast between the way Bitcoin works and the way central banks work. Bitcoin is tightening its money supply at the same time central banks are loosening it.
That is a reason to have some exposure to Bitcoin in my view. We are long Bitcoin and have been for many years.