By
Chimamanda U. Martha
May 6th, 2024
The altered dynamics, as many point out, to be caused by Bitcoin halving might introduce shifts that might be difficult for new crypto adopters to grasp and understand.
Bitcoin halving occurs approximately every four years. This happens because the cryptocurrency’s protocol is programmed to inevitably lead to the halving of the miner’s rewards for adding new blocks to the blockchain.
While halving’s significance, whether it is beneficial or disadvantageous, can always be debated, there is no denying that it has an enormous impact on the economy built around the crypto world’s most well-known and representative asset – Bitcoin.
Experts Warn against Quick, Oversimplified Understanding
Experts, industry analysts, and crypto product developers hold varied opinions on how this event might impact the industry. Herbert Sim, the COO of Websea, one of the finest gateways to Web3 investing in the digital age, believes the impact of halving this time will be unlike the previous three. “This is the first time a Bitcoin halving is occurring since the ETF approval in the United States,” Herbert reminds us.
He continues:
“Bitcoin ETFs have set new benchmarks for the currency’s demand. With the influx of billions of dollars that these ETFs have inspired, the reduction in supply would lead to never-seen-before interactions in the market, requiring a nuanced understanding. Jumping to conclusions too quickly could be counterproductive.”
Taking a cue from Herbert’s caution, it would be vital for the market participants to carefully track the post-halving events as they unfold with their complexities and contradictions.
Go-To-Market Strategies Become All the More Crucial
Gaurav Dubey’s comments on Bitcoin halving are almost an extension of Herbert Sim’s take on it. Gaurav is the CEO of TDeFi, a forerunner in incubating, consulting, and mentoring Web3 startups.
Gaurav says:
“With the altered dynamics in the Bitcoin economy, which drives sentiments for the entire crypto market, it becomes all the more important for new project developers to have their go-to-market strategy ready.”
He advocates for a wholesome strategy where developers go beyond product development, market identification, pricing strategy, messaging, and acquisition and look for enhanced community engagement.
According to Gaurav, “it is crucial to leverage influencer partnerships well, optimize your token incentivization program, build robust strategic alliances, and design knowledge management programs that are well-distributed throughout the year.”
New Entrants Need More Attention and Support
The altered dynamics, as many point out, to be caused by Bitcoin halving might introduce shifts that might be difficult for new crypto adopters to grasp and understand.
Emmanuel Quezada, the CEO and co-founder of the U-Topia ecosystem, says:
“Post-Bitcoin halving developments should not seem complex to navigate. We need easily comprehensible analyses that explain things in the simplest terms possible for users of all ages, irrespective of the stage of adoption they’re in.”
Indeed, Bitcoin ETFs have made Bitcoin more popular to a large segment of new users. These users are not as well-versed with crypto terminologies and syntaxes as the early adopters. These groups might feel left out if the talk around post-halving developments becomes too technical and jargon-heavy. The crypto space must promote effective communication channels that make these interactions accessible and inclusive for everyone.
More Efforts are Required to Make the Crypto Reward Economy Beneficial
Finally, one thing that Bitcoin halving will definitely impact is the notion of rewards. Bitcoin miners having their rewards cut in half would definitely translate into discussions around the reward economy in the crypto world.
HM Rawat, the CEO and co-founder of Lingo, an entity that has introduced an entirely new model of generating community rewards supported by RWAs, believes that crypto platforms that have a highly rewarding structure will witness greater adoption.
“It is high time for crypto-space participants to be more mindful about the reward structure projects offer their community. The crypto market was meant to be thoroughly decentralized and democratic so that each benefitted at similar levels. Discussions around miner rewards getting diminished must not discourage adoption,” explains he.
Since this time’s halving is unique, many new developments could be on the charts. Market participants must track these developments attentively. Anticipating too much based on predictions, projections, and estimates might be counterproductive.