Bitcoin went through its third halving in May last year, with the bitcoin reward paid out to those who use their computers to secure the bitcoin network, known as miners, cut in half.
“One potential framework for analyzing the impact of halvings is to study the change in the stock-to-flow ratio across each halving,” says Morehead, who was formerly Tiger Management’s chief financial officer and founded Pantera Capital in 2013.
“Extrapolating this relationship to 2020: The reduction in supply is only 40% as great as in 2016,” says Morehead.
I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself.