Bitcoin halving shows new users that ‘code is ultimately the law’ in crypto

During the latest Bitcoin (BTC) halving, a significant moment in the cryptocurrency world, influential figures within the crypto sphere voiced their varying opinions on its potential impact across various aspects of the market.

April 20 marked the fourth Bitcoin network reduction, where mining rewards decreased from 6.25 Bitcoins per block to 3.125 Bitcoons following the mining of the 840,000th block. This event reduced miner rewards to approximately $200,000.

During the Token2049 conference in Dubai, representatives from CryptoMoon engaged in discussions with the community about their views on Bitcoin’s upcoming halving and its possible consequences for the cryptocurrency market.

Bitcoin halving shows new users that ‘code is ultimately the law’ in crypto

Crypto space could grow tenfold

Emin Gün Sirer, the founder of Avalanche, presented contrasting views on the concept of halving. Technologically speaking, he expressed his reservations about it. In simpler terms, he believed that from a technical standpoint, the halving was less than ideal.

“As a technologist at my core, I see Bitcoin halving as not a great thing. Why? Because it’s a discrete event. All of a sudden the rewards going to miners go down by half. And suddenly, the security budget of the Bitcoin system goes down by half.”

The executive holds the opinion that the halving results in a significant amount, approximately “hundreds of millions,” being distributed to miners as rewards. However, according to Gün Sirer, this implies that there is less money contributing to the network’s security.

According to the founder of Avalanche, there’s a possibility that the inventor of Bitcoin is still active, which could impact the timing of the next Bitcoin halving event. He elaborated on this point by saying:

“I think if Satoshi were alive today, he would change the way the halvening is happening, not from a discrete function, from a sudden point function to a more continuous function, so that the rewards go down more gradually.”

The executive believes that the technology behind the halving could be enhanced for better results, while Gün Sirer acknowledges that this occurrence has brought positive impacts to cryptocurrencies.

His comment sparks considerable curiosity and attracts numerous investors to Bitcoin, with many expressing their views and taking stances. This trend has overall benefited the Bitcoin market and the crypto industry at large.

Gün Sirer expressed his belief that cryptocurrency’s renewed popularity would lead to significant expansion, estimating that the industry could even increase tenfold: “I believe the crypto sector will expand at least tenfold, if not more, in my opinion. In my view, Bitcoin still has a lot of room for growth.”

No immediate impact

According to Tether CEO Paolo Ardoino, as pointed out by Gün Sirer, the crypto market holds significant long-term growth potential. However, Ardoino cautioned that the upcoming Bitcoin halving may not cause an immediate price increase. He elaborated:

“I think the halving is something that is iconic, is something that is there, but not necessarily will affect immediately the Bitcoin price.”

Despite the executive’s belief that the Bitcoin halving may not influence the cryptocurrency’s price, Ardoino continues to be optimistic about the possible effects of upcoming spot Bitcoin ETFs.

“He expressed uncertainty about the Bitcoin halving event and its impact, stating that markets might have factored it in already. However, the surge in demand for a Bitcoin ETF was an unexpected development.”

Ardoino stated that the largest hedge funds have yet to invest in the Bitcoin ETF as of now. However, once pension funds and other hedge funds jump on board, according to the executive, significant price movements can be expected.

Code is law in crypto

With the influx of new investors through ETFs, the crypto market’s halving events underscore the significance of code as the governing rule in cryptocurrencies, as explained by Justin Hyun, TON Foundation’s Investment Director.

Hyun thinks that individuals going through their initial Bitcoin halving will gain an understanding of the crypto market’s dynamics. He elaborated:

“It’ll be a further validation of. The way that the code is ultimately the law in crypto, as in this thing that was pre-designed from the get-go, takes place without anybody having to push a button.”

The exec is optimistic that once the wider audience outside of cryptocurrency gets a peek at this, they’ll develop a greater interest in exploring various networks and their connection to the underlying code and user community.

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2024-04-22 14:01