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Brian Kelly Talks Bitcoin (BTC) ‘Halvening,’ Gives Portfolio Recommendation

Brian Kelly Bitcoin Halvening Price 2019

Brian Kelly, CEO of digital currency investment firm BKCM LLC and regular pundit on cryptocurrency, appeared on CNBC to explain Bitcoin’s current run to $8000 and how he imagines the price could rise even further.

Speaking with CNBC’s Fast Money program on May 21, the fund manager highlighted Bitcoin’s upcoming ‘halvening’ as a potential multiplier for the price of the currency. While the next reduction in mining rewards–when the payout falls from 12.5 to 6.25 BTC per block mined–is still a year away, Kelly believes the market ramifications will be felt even earlier.

In exactly 365 days we will experience the third bitcoin halving in history. This event marks a 50% decrease of block rewards, lowering the total supply of bitcoins mined from one block to only 6.25 BTC. How will you celebrate this event?

At present, Kelly claims that miners are hoarding BTC in anticipation of increased demand and a higher valuation in the future. While the 12.5 BTC reward payout gives them the luxury to retain some Bitcoin, as opposed to immediately selling it on the market to recoup operating and electricity costs, Kelly predicts that will be less convenient following the halvening. In addition, miners are looking to the growth of institutional investment and adoption to take the price of Bitcoin well beyond its current $8000 range.

In conjunction with a 50% reduction in new Bitcoin creation, the growth of cryptocurrency into institutional and retail use-cases will further drive demand. Increased demand and dwindling supply is what makes Kelly think that Bitcoin is in for a bullish cycle ahead, both in the lead up to the halvening and its in aftermath.

Kelly commented on the four year market cycle that characterizes each halvening, concluding that the current period has historically been good for the price of Bitcoin,  

“You generally have a rally a year into it, and a year out of it. And so we’re just at the beginning of that stage […] a supply cut is generally bullish.”

In addition to sharing his insight on the halving and what it means for upcoming Bitcoin prices, Kelly also gave a recommendation for asset allocation. He advised investors to dedicate between 1 and 5 percent of their overall portfolio to Bitcoin and cryptocurrency, while the price of BTC is still hovering at the $8000 mark.

Analysts have been split between bullish and bearish for Bitcoin following the massive rally that kicked off in early April. While the price of BTC is up over 100 percent since the start of 2019, some analysts see the bullish rally as short-lived and could see BTC retesting $6000 before generating continued price momentum.

Others have begun to point to geopolitical factors and economic policy as being the key drivers for Bitcoin price growth. With a trade war brewing between the U.S. and China, economic uncertainty over the USD/Yuan exchange rate has certain investors turning to Bitcoin as an alternative investment.

The rise of mainstream adoption for cryptocurrency also continues to be a major talking point for digital assets. Facebook has relaxed its policy on cryptocurrency advertisement in anticipation of launching its own stablecoin. Jack Dorsey’s payment platform Square also announced cryptocurrency adoption to be “inevitable,” giving an indication of the shifting sentiment towards Bitcoin compared to a year ago.

Disclaimer: Investing in cryptocurrency is inherently risky.

The post Brian Kelly Talks Bitcoin (BTC) ‘Halvening,’ Gives Portfolio Recommendation appeared first on Ethereum World News.

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Brian Kelly Believes ICOs Will Be Held to a Higher Standard

Initial Coin Offerings (ICOs)–Brian Kelly, founder and CEO of the digital investment firm BKCM LLC and a regular on CNBC’s popular crypto-based programming, has said in a recent interview that he believes the days of ICOs coming out of nowhere to million-dollar valuations is over. Instead, he believes the market has already moved towards a more mature view of the innovative funding cycle of cryptocurrency, with ICOs largely being held to a higher standard than they were even at the start of the year.

In part, the new approach has been forced upon the market and investors due to the ongoing bear cycle conditions. Rather than being flush with capital from Bitcoin and altcoin bull-runs to end 2017, most crypto investors are having to take a spare approach to their investment, in addition to legitimate fears over where the price of crypto will be at the start of an ICO buy-in versus when the coins are actually released on the market.

Speaking in an interview with CoinTelegraph, Brian Kelly expanded on his view of ICOs and how he sees the market responding to such a shift. As opposed to doing away with the controversial, and at times outright scammy method for raising capital, Kelly believes the initial coin model will stay for some time in cryptocurrency, albeit at a change from current standards,

“It will stay,” Kelly said, “but with a little change.” He went on to add, “the days of a whitepaper and a dream and $30 million are probably over.”

Kelly also gave details on what he considers when reviewing a project to invest in, listing positive factors such as promoting activities that will increase network adoption, as well as having a strong presence in industry catalysts such as conferences.

Despite regular news stories of ICOs making off with investor funds or failing to fulfill whitepaper promises (the most damning being a study published in July that found 80 percent of all ICOs could be classified as a scam) the overall health of the market has been strong throughout the year. Since the midway point, ICO volume in 2018 already doubled that of the previous year, with developers in nearly every industry flocking to cryptocurrency to cash in on what they view as easy profit. At the very least, the ICO model does provide a fast and efficient way to raise funds for projects, as opposed to the more gated approach of raising through angel investors and venture capitalists.

However, ICOs also provide very limited returns for investors, particularly those who are hoping to hold their coins for appreciation or as a long-term investment in a project. Research out of the Boston College Carroll School of Management found that over half of all ICOs die within the first four months of reaching the market, with the vast majority of profit to be made occurring in the first two weeks. Investors who fail to sell in that window are not only exposing themselves to much greater risk relative to their early cash-out counterparts, but they also run the risk of the entire project collapsing or failing to gain any adoption via exchanges.

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