5 factors that will cause the next growth of cryptocurrencies are named

BeInCrypto journalists talked to cryptocurrency experts to identify 5 factors that could lead to the next rapid growth of digital assets.

Bitcoin halving, whose main task is to control the issue of cryptocurrency and curb its inflation. Halving is an integral part of the bitcoin economic model, as it is responsible for a stable rate of new coin creation and their subsequent regulation. This controlled rate of inflation is one of the main differences between cryptocurrencies and traditional fiat currencies, which essentially have an infinite supply of coins in circulation.

During a BTC halving, the reward for mining a block is halved, meaning that bitcoin miners will receive 50% fewer bitcoins for each transaction they verify. The BTC halving occurs every 210,000 blocks, which happens approximately every 4 years. The next halving is expected in April 2024. Historically, halving leads to an increase in the price of BTC, which in turn causes other digital assets to rise. Gracie Chen, managing director of Bitget, a cryptocurrency exchange, expects the same scenario of cryptocurrency behavior next year.

People will start buying what works, not what shines. Experts predict that in the future, the crypto market will pay special attention to the usefulness of crypto protocols. This means that investors will focus more on how cryptocurrencies can be used in real-world situations, not just on their speculative value.

«Past bull markets could be caused by hype and speculation around certain tokens or projects. Now the situation is changing. I believe that investors are becoming more prudent in their investment decisions. In the future, more and more attention will be paid to the real value that protocols bring,» said Eric Chen, CEO and co-founder of the blockchain protocol Injective.

Instability and inflation. According to CoinMarketCap, BTC has already risen in price by more than 60% this year. William Zielke, Chief Revenue and Marketing Officer at BitPay, told BeInCrypto that inflationary performance will force investors to invest in cryptocurrencies.

«Bitcoin is becoming a hedge against inflation and growing banking uncertainty, so we are seeing its price rise partly because investors are looking for protection. I think we will see a rapid increase in the value of cryptocurrencies in the future ,» emphasized William Zilke.

Blockchain helps critical infrastructures. DePINs are decentralized physical infrastructure networks that use blockchain and other decentralized technologies to manage physical infrastructure. For example, power grids or transportation systems. Each device or node in the network can communicate and share resources with each other, making the infrastructure more efficient and less prone to disruption in the absence of a single central authority.

«Although this sector is just beginning to explore its true capabilities, I am seeing a lot of interest in it. The potential of blockchain has the ability to disrupt rigid [інколи монопольні] industries that have seen little real competition over the past few decades. More and more projects are looking to explore it. DePIN is the best chance for actual blockchain adoption and cryptocurrency popularity to grow that Web3 has ever had,» said Max Thack, co-founder of the Reaq blockchain network.

The number of users is growing, and so is the understanding of the market. According to analysts, the more training programs blockchain experts create, the more investors appear on the market who are ready to invest in cryptocurrencies."

There is still a big obstacle on the way to cryptocurrency — education. Blockchain should be accessible to everyone, but community slang sometimes makes it overwhelming and exclusive for the average user. If we can focus on building the infrastructure to restore trust in this space and continue to weed out bad projects that lack utility, we can succeed," said Біллі Маркус" href="https://noworries.media/biography/billi-markus/" data-bio-id="3704">Marcus Levin, co-founder of XYO.

As for the state of affairs in the crypto market, the global market capitalization has fallen by 2.3% over the past 24 hours, currently standing at $ 1.17 trillion. Yesterday, on March 27, it became known that the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against the world’s largest cryptocurrency exchange Binance and its CEO Чанпен Чжао" href="https://noworries.media/biography/chanpen-chzhao/" data-bio-id="3681">Changpeng Zhao. The company and its CEO are accused of violating industry regulations. Immediately after the news was made public, BTC $98,176.90 Bitcoin 4.38% Market capitalization $1.94 trillion VOL. 24 hours $6.65 billion dropped by 4%.