$BTC

Is the second Whale of Cryptocurrencies Microstrategy performing a synthetic halving on Bitcoin?

Adam Livingston, BTC analyst and author of The Bitcoin Age and The Great Harvest, has pointed out that Microstrategy's purchase of Bitcoin is functioning as a synthetic halving.

According to Livingston, these purchases are synthetically halving Bitcoin by buying half or more of the recently minted token issuance.

The expert noted that "miners currently produce about 450 BTC per day or approximately 13,500 BTC per month, but Strategy acquired 379,800 BTC in the last six months. This means that the firm buys approximately 2,087 BTC per day, far exceeding the daily production of miners." Adding that "When Bitcoin becomes so scarce, access to Bitcoin will require paying a premium. Borrowing against Bitcoin will cost more. Borrowing Bitcoin will become a luxury business reserved for nation-states and corporate whales, and Microstrategy will control the bottleneck."

"The global cost of Bitcoin capital will no longer be set by the market. It will be determined by the gravitational policies of Bitcoin's first superpower: Microstrategy," added Livingston.