Originally published on: October 24, 2024
Bitcoin mining difficulty has seen a significant surge in the last few years, increasing by 378% due to institutional investments in large-scale mining operations. This spike has created intense competition in the mining sector, making it harder for individual miners to participate. Despite this, Ki Young Ju, the CEO of CryptoQuant, believes that this trend could benefit Bitcoin in the long run.
Ju suggests that the rise in mining difficulty could pave the way for Bitcoin to become a stable currency by the year 2030. As institutional players dominate the market, the volatility of cryptocurrencies may decrease, leading to a more stable environment, according to Ju.
While Bitcoin and other cryptocurrencies have been associated with high levels of volatility in the past, the involvement of institutional investors has contributed to increased mining difficulty and centralization of computing power. However, Ju sees this as a positive development that could help bring stability to the Bitcoin ecosystem.
Ju’s statements are backed by data from CryptoQuant, showing a steady increase in Bitcoin’s mining difficulty from 2010 to the fourth quarter of 2024. As the cryptocurrency landscape evolves, Ju believes that major fintech firms will drive the mass adoption of stablecoins within the next three years.
Looking ahead, Ju predicts that discussions around Bitcoin’s use as a mainstream currency will gain traction by the next halving event in 2028. Despite challenges with scalability, including the slower adoption of layer-2 solutions like the Lightning Network, institutional support remains crucial for the widespread adoption of Bitcoin technology.
As the Bitcoin price hovers around the $65,000 support level, analysts are closely monitoring its performance amidst market volatility. With some experts forecasting a retest of the all-time high before the end of the year, the future of Bitcoin as a mainstream currency remains a topic of interest for investors and enthusiasts alike.
Stay updated with the latest crypto trends and regulations by subscribing to our Law Decoded newsletter. Get insights on crypto laws and guidelines to make informed decisions for your ventures. Don’t miss out on the latest updates to help navigate the evolving world of cryptocurrencies. Subscribe today!
