deVere Group CEO Predicts Bitcoin to Surge on ‘Halving’ Event

Nigel Green, the founder and CEO of deVere Group, has predicted the price of Bitcoin will surge in the ‘halving’ event in May. Every time the cryptocurrency is halved, which happens every four years, less and less Bitcoin will be mined. In 2012, the number of new Bitcoins issued every 10 minutes fell from 50 to 25. In 2016, it went down from 25 to 12.5. Now, in the 2020 halving, it will drop from 12.5 to 6.25.

“History teaches us that there is typically a considerable Bitcoin price surge resulting from halving events due to the dramatically lower supply with steady demand and increasing awareness. There’s no reason to believe the 2020 halving will be any different. Whilst halving events have previously generated major Bitcoin price runs, I believe that other key drivers will have a more significant, longer-term impact on the price of the digital currency. These include that we’re moving towards an era of zero interest rates. This reduces the incentive to keep fiat currency. In addition, rate cuts typically lead to higher inflation, which reduces the purchasing power of traditional currencies”, Nigel Green said.

“Therefore, Bitcoin, and other decentralized cryptocurrencies, become more attractive and the price will adjust upwards accordingly. In this time of economic turbulence, the growing consensus that Bitcoin is becoming a flight-to-safety asset has further strengthened. It’s ‘digital gold’ status is being galvanized. It can be expected this financial downturn will also encourage people to buy cryptocurrencies and develop crypto-orientated businesses.

“Combined with the fact that Bitcoin and other cryptocurrencies are digital and global, and the world is becoming increasingly digitalized and globalized; that demographic trends are on its side; and that institutional investors, central banks and major corporations are all coming off the sidelines, the long-term trajectory is inevitably upwards. Halving is likely to have a significant, positive impact on Bitcoin’s price, but it is real-world issues and adoption that will drive prices exponentially and sustainably.”

In late 2019, Nigel Green blasted Nouriel Roubini’s ‘crypto-apocalypse’ comment. Roubini tweeted: “Crypto-Apocalypse: Ethereum down 90% from the peak, in free fall and now close to the 2018 low. Still a long way from zero that is its fundamental value. Actually it is worth negative given all the toxic externalities of energy waste and pollution that its mining generates”

On that, Green said “many crypto critics are becoming radicalized in their attacks. The reality is that there are peaks and troughs in all financial markets, the cryptocurrency market is not – and should not be – any different. Yet each time there is a dip in the market or a bout of volatility in cryptocurrencies, the crypto haters declare that digital currencies are finished – only for them to subsequently experience a rally. The same people do not make such extreme and unfounded statements with most other financial markets. I would suggest that most people saying these things do not understand the crypto sector as it is relatively young and/or have vested interests in older, traditional ones.”

Roubini accurately predicted the 2008-2009 financial crisis and expected another big stock market crash in 2020, although the actual cause of the crash and ongoing recession is the Coronavirus, which he didn’t expect to happen.