(Bloomberg) -- As Bitcoin is about to undergo a reduction in new tokens created, that should reinforce its appeal to retail investors as “the soundest form of money,” according to Thomas Perfumo, head of strategy at crypto exchange Kraken.

Late on April 19, Bitcoin will undergo a so-called halving, when supply of new tokens the network generates will fall in half. Combined with Bitcoin’s total supply being capped at 21 million coins, that will make the coin more appealing to investors fazed by inflation and ever-rising costs, Perfumo said in an interview on Bloomberg Television.

“This Bitcoin halving in particular is the most symbolic in my opinion,” Perfumo said. “At a time when you look at their conventional currency, they see this alternative currency, Bitcoin, and it has a really crisp story. It’s reinforcing the narrative of Bitcoin as sound money.”

That said, Bitcoin is highly volatile. Ahead of the halving, the world’s biggest cryptocurrency has fallen around 10% this month. It rose 3% on Thursday to around $62,800. 

Kraken is one of the world’s biggest crypto exchanges, with $1.4 billion in trading volume in the last 24 hours, according to CoinMarketCap data.

©2024 Bloomberg L.P.