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Bitcoin just went through a big change on April 20th. The fourth “halving” happened, which means the amount of bitcoin that miners earn for processing transactions got cut in half overnight. It dropped from 6.25 bitcoins per block to only 3.125.
This huge 50% cut, hardcoded into Bitcoin’s protocol, sent some serious ripples through the interconnected world of crypto, and a lot of crypto players are scrambling to figure out what it means for them. The vibe so far is very bullish, since the previous halvings kicked off major bull runs.
But for crypto businesses and marketers, it’s an important time to think about how users might change their behavior if coins become more scarce and prices rise. How should marketing adapt during this transition? What changes in spending habits could occur? We’ve got to dive into the implications if we want marketing strategies that still engage customers in this new era. The halving shakes things up – but there’s always opportunity in times of change.
Understanding the Volatility Effects
As most of us are aware by now, the crypto space is particularly volatile. Token prices can fluctuate by double digit figures in the blink of an eye, and tens of billions of market capitalization can come piling in (or tumbling out) of the market due to news events.
So when an event is significant as the halving happens, it’s safe to say that volatility is just simply going to be the name of the game. But before we get into the details of how marketing strategies should be altered, let’s first explain what the halving actually is and what’s happening under the hood.
In short, it means that the reward that miners receive for each block they successfully mine and add it to the blockchain is halved. In the very first blocks that were mined, the reward was 50 bitcoins. Today is 3.125. One of the major implications of this is that most miners will have profitability concerns, especially those that have less efficient operations, as they might struggle to cover their costs from electricity and hardware expenses.
Following on from this, there tends to be a minor exodus. Since they are facing reduced profitability, many men are due to shut down their operations, sell their bitcoin and possibly move to mining another currency. In turn, this leads to a reduction in hash rate and the supply of new Bitcoins being minted. Historically, this has caused a radical ball run in Bitcoin’s price in the 12 to 18 months afterward, mainly due to increased demand and limited supply.
Adapting Your Marketing Strategies
All right, now that we’ve gone through the nitty gritty details of the halving, let’s chat about how to adjust your marketing tactics accordingly.
Highlight the Potential Upside
With all of the possibilities of price rises, investor’s ears are certainly going to perk up. There is going to be FOMO, lots of FOMO. This gives you an excellent opportunity to speak to this excitement. But remember, you need to do so responsibly. Rather than promise the world and shill your token, why not become an authoritative source of information by sharing the realities of the situation? Sure, there is plenty to get excited about, But it would be a good idea to craft messages that spotlight all of the potential growth while still reminding investors that crypto does come with inherent risks.
When you are talking about potential price rises, show historical data that demonstrates the impact of past halvings and how they have led to major price jumps. Bonus points if you can use charts and infographics.
Utilize Crypto PR
Rather than going it alone, the halving is about as good a time as any to bring in some experts to help you take things up a notch. Hiring a crypto PR company to blast your brand’s voice and key messages far and wide can really help turn the screw and boost your results. Instead of relying on traditional PR, these crypto PR pros truly understand the intricacies and the nuances of the crypto weld.
They will grasp the unique value that your product brings and can score your interviews with key journalists and publications, ensuring your project grabs coverage in a positive light. If you’ve got any big announcements on milestones, partnerships, or product launches, or you just want to shout from the rooftops about your product, then crypto PR may be the way to go post-halving.
Educate and Share Know-How
Given all of the hype, plenty of newbies are going to be entering the scene after hearing about the BTC halving on the news or on social media (or more likely by their friends at the bar)! This is your time to step up as a trusted expert in the field. Take the time to create helpful beginner-friendly blog articles, explainer videos, and webinars that break down the halving and the blockchain-based world as a whole.
This builds trust and gives your project a reputation for dishing out quality info. You’ll be more likely to capture these newbies and turn them into long time fans if you present them with easy to understand, digestible content.
Emphasize the Long-Term Perspective
Volatile times can spark anxiety. While acknowledging short-term fluctuations may happen, consistently embed your project within a long-term vision. Promote your roadmap, showcase development progress, and highlight the real-world value your project offers the industry. Remember, users in the crypto space are notoriously impatient. While the halving has just happened last week, many people are going to be expecting an exponential bull run immediately. In reality, history shows that it may take months or even years for this to happen (if it does at all).
Leverage Social Media and Community Building
With the halving excitement, social media buzz will likely intensify. Monitor platforms for trends, engage in conversations, and use paid advertising to reach crypto fans. Also, double down on your community – host AMAs, run contests, and make members feel invested in your project.
In Conclusion
The Bitcoin halving sends ripples through the entire market, and it’s safe to say there is plenty of anticipation for what this fourth installment may bring. While it’s certainly a good idea to jump on the bandwagon and lean into the FOMO, the best long term play is to help or educate new users that may be entering the markets. In doing so, you can come out way ahead and build serious recognition for your project.