Bitcoin Halving and Ethereum Decun upgrade are now the two most anticipated events for the crypto economy in 2024. But what are the impacts of this event on the crypto industry? The widely accepted outcome of the halving is usually a corresponding bull market.
Could this year’s halving be any different?
Also, what is the effect of the Decun upgrade on Ethereum? Haipo Yang, CEO of Coinex and a pioneer in the Bitcoin space since 2011, in an interview with DiutoCoinNews, gave his views on the outcome of the upcoming Bitcoin halving and Ethereum upgrade
Q: DiutoCoinNews; The upcoming Bitcoin halving and Ethereum upgrade are the two hottest topics in the industry at present. How do you think these two events will affect the entire cryptocurrency market?
A: Judging from history, the halving is highly related to the Bitcoin bull market, but at present, the inflation rate of Bitcoin is very low, therefore the halving will not have a great impact on the market. The reason why everyone expects that halving can lead to a bull market is that there is indeed a certain logic and coincidence between the two. On the whole, I think this is more of a market self-realization.
I think the more important reason is that the pass of the BTC ETF has allowed Bitcoin to enter the mainstream world. On the one hand, we can see a large amount of money pouring into the Bitcoin market. On the other hand, it has changed many people’s views and ideas about the cryptocurrency market, which I think may be the more important one…..
When the U.S. government passed the BTC ETF, and many people’s concept of Bitcoin changed from “scam” to “valuable” because they believed in authority. The ETF has attracted more people to understand, recognize, and even participate in this market. I think this may be the most fundamental reason for driving this round of the bull market. Of course, halving is also an important factor.
Q: DiutoCoinNews; When it comes to Bitcoin halving and Ethereum upgrade, what do you think is the main difference between Bitcoin and Ethereum? Do you think Ethereum can surpass Bitcoin in the next few years?
A: Bitcoin and Ethereum do have different characteristics in the development path and many other aspects. Although Bitcoin is still the most mainstream asset and has attracted much attention, its development has stalled almost a long time ago.
The core protocol of Bitcoin is relatively stable, and there has been no fundamental change since the release of Satoshi Nakamoto. Despite some soft fork upgrades, it has little impact on the network, and development activities are relatively stagnant.
In contrast, the development of Ethereum is more active, especially through the continuous evolution of reducing network operating costs and active expansion. The evolution from POW to POS consensus mechanism has greatly reduced network operation costs and reduced energy consumption, enabling Ethereum deflation.
In the future, as costs fall further, the deflation rate may increase. At the same time, Ethereum has actively expanded its capacity to continuously meet the needs and technical challenges of new markets. Over time, Ethereum has built a huge ecosystem.
Vigorous development of smart contract projects is nourished in this ecosystem. The continuous innovation of this ecology makes Ethereum occupy an important position in the blockchain and cryptocurrency industry.
Ethereum has achieved deflation, and its value has increased. On the contrary, Bitcoin still needs continuous mining to maintain its operation, and as the mining reward is halved, this POW model is becoming more and more unsustainable.
Ethereum’s consensus mechanism is healthier, and it is constantly innovating both in terms of protocols and applications, and the whole ecosystem is becoming more and more prosperous. So, I think Ethereum is the most potential blockchain project at present.
Q: DiutoCoinNews; Will Ethereum Killers affect your prediction?
A: Although there have been some competing projects known as “Ethereum killers,” most of them no longer exist. At present, the only challenging project is Solana, which chooses a route that is incompatible with Ethereum, which is quite centralized on the whole….
In addition, although there have been some similar challenges in history, most of them have failed to persist or replace Ethereum. A strong ecosystem and path dependence have been established on Ethereum, making developers and users more willing to stay on Ethereum rather than turn to other platforms. This path dependence will further strengthen Ethereum’s position and lay a solid foundation for its future development.
If Ethereum exceeds Bitcoin, does it also imply that its price will be higher than Bitcoin? What signs should ordinary investors pay attention to that may reveal that Ethereum is surpassing Bitcoin?
I think when talking about this topic, we are talking about market value, not price. Although the market value of Ethereum is now around 30% of that of Bitcoin, the market value of Ethereum has been close to that of Bitcoin in history.
In this round of bull market, I believe that the market value of Ethereum is likely to exceed that of Bitcoin because as more people participate, more funds and applications will pour into the market.
Ethereum has formed a relatively mature ecosystem, and there will be more innovations to link more value to this system in the future. Compared with Bitcoin, the long-term growth of Ethereum is bound to be higher. In addition to market value, the trading volume of spots, futures, ETF, etc., as well as broader use cases in the real world, are signs that we can pay attention to.
Investor Advice
Q: DiutoCoinNews; What do you think are the outstanding features of CoinEx compared with other platforms that can become a popular trading platform for new and old users?
A: I think the core is that we can meet the investment and trading needs of users promptly. In terms of assets, we adhere to the principle of “Good, Fast, and Comprehensive” to help users filter risks in advance and screen high-quality and high-potential projects for users.
Secondly, I think that as a global exchange, we attach great importance to the development of business localization and adopt different localization strategies for different regions and markets. To better serve diversified global customers, we provide support in 16 languages and 24-hour customer service, and the system covers more than 200 countries.
Finally, it is the product. We focus on the polishing of core products and functions, hoping to use our expertise to think and solve problems for users and to provide users with a relaxed and pleasant trading experience.
Q: DiutoCoinNews; What do you think of CoinEx’s role in the future world?
A: As a cross-chain exchange, we support the largest number of public chains in the market, and there will only be more in the future. Users can find any public chain with a solid foundation or assets with high value and potential on CoinEx.
In addition to meeting the diversified investment needs of users, we are also constantly exploring the future development trends and direction of the industry at the strategic level. For example, this year, we launched our own Web3 wallet – CoinEx Wallet.
Whether now or in the future, our original intention remains unchanged, and we are committed to becoming a gateway for users to enter the encrypted world and the infrastructure for investment transactions. I hope to strengthen the exchange and wallet and provide users with high-quality products and services so that users can think of us when they need it.
Q: DiutoCoinNews; What are the development plans of CoinEx in 2024? Do you have any suggestions for new investors in the cryptocurrency market?
A: This year, our main efforts are to continuously improve products and content around the trading needs of users. The first is the trading demands, including the demand for various assets and financial products, such as spots, futures, swap, and financial management. At present, our products have met these needs.
The second is about trading decision-making and trading management, involving information, fundamentals, and technical considerations, including profit and loss analysis, trading notes, and trading experience. We also provide users with corresponding products and content support.
In terms of content, we are committed to providing users with high-quality and professionally valuable information. We have CoinEx Research for market analysis and research, CoinEx Academy for users with rich education and popular science guidelines, and CoinEx News for users for timely market information. Generally speaking, we want to better meet the investment of users. Demand, and use expertise to help users make informed investment decisions.
Well, as for any suggestions, I think it is possible to leave more to the investors who have been in the crypto market for a long time. Compared with new investors, it is not easy for these investors to make money in the bull market. The whole industry is constantly changing, and the hot spots and stories are constantly changing, but many investors still hold obsolete ideas, whether in terms of price or assets, they are relatively conservative.
I think everyone should regard themselves as new investors in the cryptocurrency market. The current market is completely different from a few years ago. I hope that everyone can be willing to accept changes, embrace changes, and constantly learn and innovate so that it is possible to seize the opportunity.
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