The history behind the Bitcoin halvings’ impact on the price of the cryptocurrency and other digital currencies in the market, makes many crypto pundits believe it is the market’s biggest and the most promising catalyst for price parabolic rally.
Bitcoin halving reduces the block rewards by half, such as the most recent halving, the block rewards experienced a reduction from $12.5 to $6.25, which implies a 50% reduction.
This is expected to reduce miners’ interest, as many of the affected miners would see Bitcoin mining as unprofitable, hence their departure from the business.
According to general belief, there will be a scarcity of BTC since there is a drastic reduction in supply, but demand would remain unchanged, which would thereby result in significant price uptrend.
However, this remains a speculation until it plays out. But the introduction of Ethereum 2.0, a blockchain upgrade that promises a dramatic improvement of speed and usability of the network, would do more to impact the crypto market than the recently occurred Bitcoin halving, a crypto analyst has said.
Messari’s Ryan Watkins Says ETH 2.0 Is a Better Catalyst than Bitcoin Halving
Ryan Watkins is a crypto analyst and researcher at Messari, a channel that provides top research, news, metrics, and live data for cryptocurrency.
Watkins recently took to Twitter to point out the reason he thinks that the much anticipated Ethereum 2.0 is a stronger catalyst than the Bitcoin halving.
He averred that the effects of the Bitcoin halving are known in advance, or better still, they’re predictable, while the effects Ethereum 2.0 will have on the growth and development of Ethereum (ETH) across the board are a bit more unpredictable.
Ryan Watkins shared this, “ETH 2.0 is a much stronger catalyst than the Bitcoin halving simply because it’s an uncertain and fundamental change.”
ETH 2.0 is a much stronger catalyst than the Bitcoin halving simply because it’s an uncertain and fundamental change.
— Ryan Watkins (@RyanWatkins_) May 13, 2020
Although the Messari’s researcher did not indicate how the catalyst in ETH 2.0 could positively impact the price of Ethereum (ETH), many crypto pundits believe that the upgrade will generally favor prices in the crypto market.