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Author: Savannah Fortis, Cointelegraph; Compilation: Deng Tong, Bit Chain Vision World
In the continuous development pattern of cryptocurrencies and blockchain technology, few events are just as important as Bitcoin halves.
This milestone incident occurs about every four years or every 210,000 blocks, and as a basic mechanism, rewards to Bitcoin miners by half.
The first halving incident occurred in November 2012, when the block reward dropped from 50 BTC per block to 25 BTC.It is expected to be halved at a certain time in mid -April 2024, and the rewards of each block will be reduced to 3.125 BTC during this period.
In addition to the direct impact of Bitcoin supply dynamics, the reduction incident also affects the entire cryptocurrency ecosystem, including decentralized finance (DEFI) field.
Cointelegraph interviewed many experts in the DEFI field, from market analysts and Bitcoin -related business executives to advocates adopted by Bitcoin to understand how they think it will have on the community.
Boost the market
The core concept of DEFI is to achieve the democratization of financial services by using blockchain technology to create openness, no licenses and no trust in the financial system.As a pioneering cryptocurrency, Bitcoin plays a key role in shaping DEFI’s spirit and infrastructure.
Therefore, any events affecting Bitcoin supply and market dynamics inevitably affect the trajectory of DEFI.
Invest.conotoxia.com’s market analyst Grzegorz Drozdz pointed out that halving can not only increase the value of Bitcoin, but also increase the entire cryptocurrency market.He said:
“Since Bitcoin is an important part of the DEFI ecosystem, the increase in value can attract more investment to enter the DEFI platform and project, thereby promoting its growth and adoption.”
He added, however, the status of Bitcoin is currently strengthening the status of the entire cryptocurrency market, and has reached 54%of the total market capital. “Prove that capital is first integrated on the main cryptocurrency. Only later can we transfer to other projects later”” “
Price fluctuation and decentralization test
Historically, with the increase of Bitcoin scarcity, the price of cryptocurrencies appreciates.The rise in the price of BTC may bring the effect of rising and high, which may lead to an increase in investment in DEFI protocols and applications.
The decrease in the circulation rate of Bitcoin may also affect its availability on the decentralized exchange (DEX) and lending platforms. On these platforms, Bitcoin usually acts as a mortgage for various financial activities.
The scarcity of Bitcoin may also mean that it may increase as a collateral and may affect the lending interest rate, liquidity pool and liquidity mining strategy in the DEFI ecosystem.
In addition, Bitcoin halves is the elasticity and adaptability of decentralized financial protocols.
With the dynamic fluctuation of supply and demand in the cryptocurrency market, the DEFI platform must innovate and iterate to adapt to changing market conditions.
Bitcoin reporter and advocate Joe Hall said, “A project is either decentralized or not.” He said: He said:
“Bitcoin is obviously decentralized, and most (if not all) claim to include DE into the DEFI project, but so. I hope that the anti -fragile and predictable positions of Bitcoin can indicate the ‘DEFI’ project of the ‘DEFI’ project.Real meaning.
Attract external attention
Musles at each time, Bitcoin will become the focus of the mainstream, even if it is just a small time, major media will report this incident.
At this moment, it can not only arouse the interest of new investors, but also cause the interest of regulatory agencies and developers, which may lead to stricter supervision of the DEFI field, but it can also stimulate innovation, because developers are committed to creating complianceContinuous Defi solution.
Hall said that the predictability of the incident may be useful for the encryption industry. As we all know, the encryption industry usually confuses regulatory agencies.
“Uncertainty has always been a prominent theme in the 21st century finance and politics, and the predictability of Bitcoin has enhanced its appeal.”
John Dennhy, the founder of Education Project Mi Primer Bitcoin, also agrees with this view:
“Half is one of the most obvious examples of Bitcoin predictability and decentralization -we all know that it will happen. No entity or group is capable of changing it than anyone else.”
Bitcoin halves is not a psychic medicine for cryptocurrency or the success of the entire DEFI ecosystem.However, it is indeed a major event that can play a role in shaping the future of this rapid development.
