We are now getting closer to the bitcoin halving event. Some predict this would impact price and things would rally. Some predict it would increase the fees across the crypto market. And things would slowly take off. However it feels like a lot of other events are likely to happen as the halving begins.
Most of the financial asset and the management firms have caused the bitcoin prices to rise. And as they are including the bitcoin into the funds. That would surely have a strong impact on the market as well as the altcoin portfolios of many companies.Which would also rally as a side effect.
Let's take a look at some of the speculative and some data backed events that are likely to happen as a domno effect.
Bitcoin Halving would invite Rise in Mining cost
Unlike other proof of stake systems which have low to no increase in the prices, you may not find the same with the proof of work coins. Bitcoin being one of the original token that was under development of the proof of work, we are going to see bitcoin to do some increase in price of the coin. This could be because of power rate and the growing economy around the world pushing server cost. You can check the pool progress here.
Bitcoin Halving and Altcoin Rally
Whenever bitcoin makes a movement there is also rise in the ethereum market. There are some of the projects which are backed by the bitcoin value and they are going to be rallying. And that also means that other projects like Solana, Polygon, Optimism and other chains are going to see the impact in their prices too. Though bitcoin's price also impacts the DeFi market too. Let's see how that happens.
Bitcoin Layer 2 networks would Innovate on Fees and Speed
There are multiple layer 2 systems are coming out. I was only exposed to the lightning network and they are kind of low fees and high speed type of the network. And they have kind of kept the interest in bitcoin going. As the tip based social networks are adopting the lightning networks, we can see more rise in the type of the coins that would be on their own layer 2 and they would be adding fees and speed to the chain.
Digital Proucts including Bitcoin would Impact Price Rise
A lot of financial digital products are adding the bitcoin into their portfolio. And this would increase the price of the bitcoin after the end of the inclusion through regulated means. For example apart from the ETF, you would also find the increase in the digital custody products like REITs etc which would be bitcoin backed. And they would add up on the price rise too.
Bitcoin Mining going International in Adoption
As the digital products are rising there would also increase the miners which are natonwide through the adoption from the govt. And this also means that there would be increase in the mining rigs run by the govt companies and the private players. So the private hidden bitcoin rigs won't be much affected but they would feel secure now. In short regulated mining would begin from now onwards.
Digital economy would be Norm in next 12 months!
CBDCs are going to be included in atleast 20 nations around the world. And the digital coins are going to be replacing the cash in many places. And with the bitcoin based products added into the economy through the process would make the economy use and adopt the digital currencies be it CBDC or any crypto through online menas in upcoming times.
Bitcoin halving is happening and there would be plenty of theories out there on what is likely to happen. Some of the speculations from my side above would likely come true in right time frame. Let's see how bitcoin impacts the next decade.