In 2020, the two hottest topics, one is the third halving of Bitcoin, and the other is the launch of Ethereum 2.0. There is no doubt that both of them will help promote the arrival of the bull market, but who is more Big?
Looking back at the previous bull markets, especially the big bull market in 2017, Bitcoin's halving effect played a vital role. With the development of blockchain technology and digital currency, people are paying more and more attention to digital currency. As the number one cryptocurrency, the world's first public chain, the cryptocurrency with the highest market value, the consensus of Bitcoin varies The improvement. The Bitcoin halving deflation mechanism is designed to help reduce Bitcoin's market circulation. As market demand increases and circulation decreases, Bitcoin's price is bound to rise sharply.
But Bitcoin's halving is not an immediate effect, it will gradually show up over time. This can be concluded from previous market data analysis. In 2012, Bitcoin was halved for the first time. After a year of fermentation, Bitcoin only ushered in a bull market in 2013. In 2016, Bitcoin was halved for the second time, but it was not until the second half of 2017 that the door to the bull market was opened.
This year’s market is very similar to the market structure before the bull market. On May 13, Bitcoin was halved for the third time. However, it was only recently that the price of Bitcoin began to rise, breaking through the previous high in one fell swoop. New high during the year. Therefore, judging from the past halving market, next year is very likely to usher in a bull market.
The Ethereum 2.0 version has the same influence as the Bitcoin halving effect. From the perspective of ETH supply and demand, the influence of ETH2.0 is undoubtedly the largest in the history of Ethereum. It will exceed the previous impact of 1CO and DeFi on ETH.
The launch of the PoS pledge mechanism will create a huge demand for ETH. Currently, about 8% of ETH is pledged on DeFi, and there is about 2% in gray scale. In the future, after ETH2.0 goes online, the amount of ETH pledge is expected to reach 30%. This will cause the ETH in circulation to be greatly reduced.
After the official launch of Ethereum 2.0, it will help the development of DeFi and DEX, and the development of DeFi and DEX will greatly increase the amount of ETH locked up, which will help deflate the amount of Ethereum. We all know that Bitcoin is issued constantly, while Ethereum is different. Its issuance can be issued unlimitedly according to the needs of the Ethereum ecosystem. Ethereum's EIP-1559 can capture value. The core of EIP-1559 is to trade The basic cost is destroyed. At present, the transaction cost of Ethereum has surpassed BTC to become the largest value capture place in the encryption field. Its annual transaction cost has reached 760 million US dollars, which is about twice that of Bitcoin or Uniswap.
If Ethereum uses this huge transaction fee to set up a related deflation mechanism to accelerate the scarcity of Ethereum, it will greatly promote the price of Ethereum and the increase in storage locations, and may push ETH beyond the value of Bitcoin. Storage location.
From an ecological perspective, the underlying structure of Bitcoin limits the expansion of the Bitcoin public chain, but unlike Ethereum, it brings the blockchain technology into the 2.0 smart contract stage, which makes the application of the blockchain unlimited possibilities Sex, DeFi, DeFi+NFT, DEX are the best examples. It is believed that the launch of Ethereum 2.0 will bring many unpredictable surprises to the digital currency field. Therefore, from this perspective, the pledge effect of Ethereum 2.0 will drive the bull market even more.
According to the analysis of traditional financial and digital currency data, after the launch of Ethereum 2.0, DeFi will usher in an explosion again, especially in financial management. Therefore, many exchanges with cutting-edge vision now have launched related financial products. For example, on October 23, BitOffer and Goldman Sachs Asia's top quantitative team, based on years of experience in asset management for large institutions and large customers, after fully investigating the needs of users in the currency circle, the first to launch a global quantitative fund that guarantees capital and returns.
The name of the quantitative fund project is "Changying No. 1". It uses strategies such as quantitative hedging, quantitative arbitrage, and high-frequency trading to achieve an annualized return of up to 20%, crushing similar quantitative funds in the currency circle. It not only satisfies people's pursuit of capital preservation and high yield, but also makes up for the shortcomings of non-principal-guaranteed products in spot, contract, and digital derivatives. It is the perfection of the entire digital currency market.