TL;DR

• There’s a theory that the more interest BTC gets post-halving, the more regulatory scrutiny it will be put under which could ultimately be a net-negative for Bitcoin (and therefore, the industry as a whole).

Full Story

Right now, everyone’s talking about the BTC halving - and so they should be, this halving is probably the biggest event in BTC’s history after it’s creation.

But we just read a story that caught our eye.

The premise: the more interest BTC gets post-halving, the more regulatory scrutiny it will be put under which could ultimately be a net-negative for Bitcoin (and therefore, the industry as a whole).

So the theory goes, because the amount of new supply introduced into the market will be halved (following the halving event), it’ll result in ‘crypto mania.’

The difference this time compared to any halving before it is that now we have BTC ETFs in the US.

Crypto mania is good when things are going well, but historically what we’ve seen is when things go up quickly, they usually come down just as fast (or faster!).

The job of regulators is to keep things in control, not to let the value of BTC go in either direction too quickly.

If this bull run turns into complete crypto mania (as it has in previous bull runs), then regulators may be forced into rethinking regulation to regain market stability and protect investors.

Other areas may also need to be rethought - for example, BTC uses proof-of-work which requires a ton of resources to produce enough energy to validate transactions. So regulation around sustainability may be on the table as well.

The good news is, for now, these are all just theories and ideas.

And if there’s one thing we know about the crypto markets it’s that what we expect to happen, and what actually happens, don’t always align.

Happy Halving!! 🌗