Bitcoin Halving: Code is the Law in Crypto

The fourth Bitcoin halving event has recently taken place, reducing mining rewards from 6.25 BTC per block to 3.125 BTC. This event has sparked different perspectives within the crypto community regarding its potential impact on the industry. Emin Gün Sirer, founder of Avalanche, believes that from a technological standpoint, the halving is not a positive development as it reduces the security budget of the Bitcoin system. He acknowledges that the halving has stimulated speculation and interest in crypto, which has been beneficial for the entire industry.

Gün Sirer suggests that if Bitcoin’s creator, Satoshi, were alive, they might have implemented a more gradual reduction in rewards rather than a sudden decrease. Despite this viewpoint, Gün Sirer remains optimistic about the future growth of the crypto space, predicting that it could grow tenfold in the coming years.

Paolo Ardoino, CEO of Tether, does not believe that the halving will immediately impact the price of Bitcoin. He suggests that the halving has already been priced in, but believes that the introduction of spot Bitcoin exchange-traded funds (ETFs) could have a significant influence on the price. Ardoino expects that when major hedge funds and pension funds start investing in Bitcoin ETFs, there will be significant movement in the market.

Justin Hyun, director of investments at The Open Network (TON) Foundation, highlights that the halving event demonstrates how code acts as the law in the crypto industry. He suggests that newcomers to the space will witness this and gain a better understanding of the crypto industry’s structure. Hyun hopes that this observation will pique the interest of those outside the crypto community and encourage them to explore different networks and how they function.

The Bitcoin halving has evoked a range of perspectives within the crypto community. While some express concerns about its technological impact, others see it as an opportunity for growth and speculation. The future of the crypto space remains uncertain, with the potential for significant movements in the market depending on the adoption of Bitcoin ETFs and the exploration of different crypto networks.