The New Economic Landscape After BTC Halving

Bitcoin is about to break new highs, while its ecosystem continues to develop comprehensively, with projects like Layer2, (Re)Staking emerging one after another. What is the significance of Bitcoin (re)staking? What new opportunities will entrepreneurs and investors have after the Halving? What is the market size of BTC staking? Is this a long-term opportunity or a short-term hotspot?

Recently, several participants in the BTC ecosystem have engaged in in-depth discussions on this topic. Participants include the co-founder and CEO of a cryptocurrency company, the CSO of a decentralized Bitcoin staking protocol, the founder of a BTC restaking tokenization solution, and a core contributor to a certain BTC project. They all agree that, whether in the short, medium, or long term, the BTC ecosystem holds numerous opportunities.

The following are key points整理:

• This Bitcoin Halving is influenced by multiple factors, and there is uncertainty in the future market. The Halving mainly affects the supply side, leading to a significant reduction in miner income, which has a particularly large impact on miners using old mining machines. Miners will be forced to accelerate equipment upgrades, optimize costs, or move to areas with lower electricity costs. However, due to the strong risk resistance capacity of large miners and capital, the overall network hash rate will decline only slightly.

• Bitcoin mining rewards will gradually decrease, eventually approaching zero. In the future, Bitcoin returns will mainly come from being an investment asset, investing in L2, DeFi, CeFi, and other ecological projects, allowing holders to benefit from it, which will become an important development trend.

• Future earnings for miners come from newly issued BTC and transaction fees, the latter of which depends on ecosystem activity. More staking projects can incentivize ecosystem development, leading to more on-chain activities and transactions, improving network security and increasing miners' transaction fee income.

• PoS lacks external economic incentives, and its security is limited by the scale of the on-chain economy, posing a risk of being controlled. Bitcoin staking and restaking introduce large external assets to provide security for the PoS network, addressing its inherent flaws. This is the significance of Bitcoin (re) staking.

• The CEO of a cryptocurrency company predicts that Bitcoin staking will be a billion-dollar market, comparable to the early days of PoW mining, and can meet the future demand for high-performance application chains that require secure infrastructure.

• The founder of the BTC restaking solution believes that the future of the Bitcoin ecosystem needs to focus on four key areas: architectural innovation, L2 development path selection, efficient asset circulation, and security guarantees.

• For ecological builders and entrepreneurs, the short term can address network congestion issues, accommodate overflow demand, the medium term focuses on the income needs of holders, and the long term aims at the ecological prospects after potential scripting language upgrades. It is worth noting whether there will be more application scenarios around Bitcoin in the future? Will there be better tools to assist in Bitcoin usage? And will there be novel programming models to break its non-Turing completeness?

• As a new type of solution in the Bitcoin ecosystem, one protocol addresses objective violation issues, while another project tackles subjective attacks.