Originally published on: October 24, 2024
Bitcoin mining difficulty has seen a significant surge in the past few years, shooting up by 378% due to increased institutional investments in large-scale mining operations. As a result, there has been intense competition in mining, creating entry barriers for individual miners. However, according to Ki Young Ju, the CEO of CryptoQuant, this trend could actually benefit Bitcoin in the long run.
In a bold prediction, Ju suggested that the rising mining difficulty could pave the way for Bitcoin to transform into a stable currency by the year 2030. With institutional players dominating the space, the cryptocurrency market could experience reduced volatility, bringing more stability to Bitcoin.
While Bitcoin and the broader crypto market have been synonymous with volatility, the growing participation of institutional investors and the centralization of computing power through mining could help stabilize the ecosystem. Ju noted that major players in the fintech industry are expected to drive the mass adoption of stablecoins within the next three years.
Looking ahead to the next halving event in 2028, Ju believes that Bitcoin’s use as a currency will become a prominent topic of discussion. Despite the existence of layer-2 solutions like the Lightning Network for scalability, adoption rates have been slower than expected. Ju emphasized the importance of institutional backing for the adoption of BTC layer-2 solutions, especially given the competition from alternatives like Wrapped Bitcoin.
According to Ju, the $65,000 price level has become a crucial support level for Bitcoin, following its recent surge to $69,000. Market analysts will closely monitor Bitcoin’s performance in the coming weeks, with some predicting a retest of its all-time high before the end of the year.
As the landscape of Bitcoin continues to evolve, the role of institutional investors and mining operations will play a crucial part in shaping its future as a stable currency by 2030. Stay updated on the latest developments in the crypto space to make informed decisions for your ventures. Subscribe to our newsletter for weekly insights on crypto laws and guidelines.
