Crypto Insiders Weigh Impact of Bitcoin Halving Event on Market's Future
Summary:
The recent Bitcoin halving event has stimulated differing perspectives within the crypto community. While Emin Gün Sirer of Avalanche had reservations about the sharp cut in mining rewards and its consequent effect on the security budget of the Bitcoin network, he also expressed optimism about the event's beneficial impact on crypto speculation and market growth. Meanwhile, Tether CEO Paolo Ardoino sees no immediate impact on Bitcoin prices but remains bullish about the future ramifications of Bitcoin ETFs. The Open Network’s Justin Hyun underscored the event as a reaffirmation of "code is law" in the crypto world.
The recent Bitcoin (BTC) halving served as a significant event for all stakeholders within the realm of cryptocurrencies. Essentially, the halving took place on April 20, when the 840,000th block was mined, thereby bringing the mining rewards down from 6.25 BTC to only 3.125 BTC per block; this equates to approximately $200,000 at present market rates. Within the scope of the recent Token2049 conference in Dubai, Cointelegraph interacted with several industry insiders to understand the potential connotations of this event on the crypto market generally.
Emin Gün Sirer, founder of Avalanche, provided a two-fold view on the implications of the halving. He claimed that from a technology perspective, the Bitcoin halving was an unsatisfactory event, since it drastically reduces the rewards given to miners by fifty percent; consequently, the security budget of the Bitcoin network is halved as well. He argued that such dramatic reductions in miners' compensation may decrease the amount of resources utilized to secure the network. Gün Sirer theorized that if the creator of Bitcoin were around today, he may have chosen a more gradual reduction in mining rewards.
However, despite identifying areas for technological improvement relating to the halving, Gün Sirer acknowledged the event's positive influence on cryptocurrency speculation and market activity. This, he argued, increases interest in cryptocurrencies and has potentially set the stage for the cryptocurrency market to grow by at least ten times its current size.
On another note, Paolo Ardoino, CEO of Tether, doesn't anticipate the Bitcoin halving to immediately affect Bitcoin's market value. He maintains a bullish stance on the future impact of Bitcoin ETFs on the market. He additionally added that large hedge funds have yet to tap into the potential of the Bitcoin ETF and as these major players begin investing, will witness significant market changes.
Finally, the director of investments at The Open Network (TON) Foundation, Justin Hyun, argued that the halving event reinforces the principle of "code is law" within the world of cryptocurrencies. He asserts that newcomers witnessing the Bitcoin halving will gain a better understanding of how the cryptocurrency system operates. This historic event reinforces the concept that pre-existing coding underwrites cryptocurrency laws and unfolds without human intervention. Hyun hopes that greater societal awareness of this will increase curiosity about the various cryptocurrency networks and their relationships with underlying codes and users.
Published At
4/22/2024 1:45:48 PM
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