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Bitcoin Halving Sparks Debate on Code Governance and Future Growth

Crypto leaders discuss Bitcoin halving implications at Token2049, highlighting its role in blockchain governance.

Tue, 23 Apr 2024, 02:57 am UTC

The recent Bitcoin halving event has ignited discussions among crypto experts about its impact on the market and future growth, underscoring the immutable nature of blockchain technology rules.

Industry Leaders Weigh In on Bitcoin Halving's Impact at Token2049

As the Bitcoin halving marked another significant milestone in the crypto sector, figures in the crypto community expressed differing views on how the event would affect various aspects of crypto.

According to Cointelegraph, the Bitcoin network completed the fourth halving event on April 20 after mining the 840,000th block. This event decreased mining incentives from 6.25 Bitcoin per block to 3.125 BTC, which is worth around $200,000 at the time of writing.

At the Token2049 event in Dubai, Cointelegraph spoke with community members about the halving of Bitcoin and its likely influence on the cryptocurrency ecosystem.

Avalanche Founder Critiques Bitcoin Halving, Predicts Tenfold Crypto Growth

Avalanche creator Emin Gün Sirer expressed two opposing viewpoints on the halving. From a technological standpoint, Gün Sirer contended that the halving was inadequate. He explained:

“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 expects that halving will result in "hundreds of millions" being paid to miners who go down. Gün Sirer contended that this means spending less money to secure the network.

The Avalanche founder believes that if the Bitcoin creator was still "alive," the Bitcoin halving may alter. He explained:

“I think if Satoshi were alive today, he would change the way the halving 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.”

While the CEO believes that the halving may be improved from a technical standpoint, Gün Sirer acknowledged that the event positively impacted cryptocurrency.

“This creates a lot of speculation, a lot of buying into the space, a lot of people taking a position in Bitcoin, which in general has been great for the rest of the space as well,” he added.

Gün Sirer added that it's also wonderful for reigniting interest in cryptocurrency, predicting that the space will grow tenfold. “I see the crypto space growing by at least another factor of 10, if not more so. Bitcoin has a lot of growth ahead of it, in my view.”

Tether CEO Discusses Bitcoin Halving's Subtle Market Impact, Eyes ETF Potential

While Gün Sirer emphasized the potential long-term growth of the cryptocurrency field, Tether CEO Paolo Ardoino told Cointelegraph that halving may not immediately impact the price. Ardoino explains:

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

Even though the executive believes the halving will have little effect on the Bitcoin price, Ardoino is optimistic about the potential impact of spot Bitcoin exchange-traded funds (ETFs).

“I don’t expect it. Maybe it will happen, maybe it will not. But I think that the Bitcoin halving was priced already. What was not necessarily priced was the enormous interest in the Bitcoin ETF,” he added.

Ardoino noted that the largest hedge funds had not yet invested in the Bitcoin ETF. When pension and other hedge funds began investing, the CEO said, "We'll see big moves."

Bitcoin Halving Validates Crypto's Code-Driven Structure, Says TON Foundation Executive

According to Justin Hyun, director of investments at The Open Network (TON) Foundation, with ETFs bringing new players into the crypto field, the halving demonstrates how code functions as the law in crypto.

Hyun feels that those who witness the Bitcoin halving for the first time will gain an understanding of how the cryptocurrency sector operates. He explains:

“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 CEO thinks that when the wider crypto community sees this, they will become more interested in alternative networks and how they interact with code and users.

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