EXCLUSIVE: Industry Leaders Predict How The Bitcoin Halving Impacts Prices And Mining

As the cryptocurrency world braces for the upcoming Bitcoin halving, industry leaders told Benzinga they expect significant market shifts, voicing concerns over mining centralization.

What Happened: Jesper Johansen, CEO of Northstake, highlights the potential for a significant price surge post-halving, stating, “Since the Spot Bitcoin ETFs launched, the demand for Bitcoin BTC/USD has already tripled the supply of newly minted coins, forecasting strong upward price pressures post-halving.”

He emphasizes that historically, Bitcoin’s positive price trends have led to similar movements across major crypto assets.

Andreas Brekken, founder of SideShift.ai, supports this view but with a unique twist on the investment perspective: “The halving is never priced in. For many, especially those new to Bitcoin ETFs, the realization of Bitcoin’s built-in scarcity could dramatically shift market dynamics, potentially pushing BTC towards the $200,000 mark in this cycle.”

Mining Dynamics And Centralization Issues:

The halving event will also profoundly affect the mining industry.

Johansen predicts hash rate volatility as smaller operations struggle with increased costs, leading to a dominance of large mining pools.

This centralization could pose risks to Bitcoin’s decentralized nature.

“Centralized mining pools might manipulate transaction confirmations and influence protocol decisions, which is antithetical to Bitcoin's foundational principles,” Johansen cautioned.

To combat these risks, Johansen proposes that the community considers changes that would promote decentralization, although he recognizes the challenges in achieving consensus for such modifications.

Also Read: Bitcoin Price May Drop After Halving Despite Miner Shakeup: JPMorgan

Layer 2 Innovations And New Opportunities:

Tal Zackon, CEO of TRES, highlights the growth of Layer 2 solutions as essential for enhancing Bitcoin’s utility beyond mere capital appreciation.

“The development of solutions like Core Chain and StakeLayer is critical as they offer new staking mechanisms, potentially diversifying Bitcoin’s use cases,” Zackon explains.

Industry Adaptation And Future Outlook:

As the halving approaches, the need for industry adaptation becomes more pronounced.

Zackon urged businesses to prepare for shifts in the Bitcoin landscape, particularly in how they generate revenue from Bitcoin holdings.

“With the halving potentially acting as a catalyst, we might see Bitcoin prices surge as ETF demand increases, driven by newfound scarcity,” he adds.

Connecting To Benzinga’s Future of Digital Assets Event:

These insights set the stage for deeper discussions at the upcoming Benzinga Future of Digital Assets event on Nov. 19.

The conference will delve into strategies to address the implications of mining centralization and explore innovative financial products emerging around Bitcoin's new economic model.

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