Bitcoin’sminingdifficultyhassurged378%inthreeyears,signalingthegrowingcompetitionamonginstitutional-backedminers.
Asinstitutionalinvolvementgrows,Bitcoin’svolatilitydecreases,boostingitspotentialtobecomealow-volatilitycurrencyby2030.
The2028Bitcoinhalvingisexpectedtodrivediscussionsonitsuseascurrency,withstablecoinadoptionplayingakeyrole.
Bitcoinmightshiftfrombeingonlyavalueholdertobecomingaregularcurrency,by2030accordingtoKiYoungJu,wholeadsandfoundedCryptoQuant.Jugaveseveralreasonswhythischangecouldhappeninthecomingsixyears,notingthemainpointsinBitcoin’sgrowthandthecryptospace.
#Bitcoinwilllikelybeusedasa\"currency\"around2030.
Bitcoin\'sminingdifficulty,whichreflectstheintensityofcompetition,hasconsistentlyhitall-timehighs,increasingby378%overthepastthreeyears.
While50BTCcouldbeminedwithasinglePCin2009,ithas…pic.twitter.com/lY8pRreZCl
—KiYoungJu(@ki_young_ju)October24,2024
IncreasedMiningCompetitionHighlightsBitcoin’sMaturation
JupointedtotheastonishingsurgeinBitcoinminingdifficultyasoneofthebigcontributors.Miningdifficultyhassurged378%overthreeyears,reflectiveofthekeencompetitionamongstminers.In2009,whenBitcoinlaunched,mining50BitcoinsrequiredonlyasinglePC.However,today,miningactivitiesaredominatedbyhugecorporationssupportedbyinstitutionalinvestors,andthishasmadeitfarmorechallengingforordinaryindividualstotakepartinmining.This,Jubelieves,reflects“thecontinuedmaturationofBitcoinasatechnology”.
ReducedVolatilitytoBoostBitcoin’sPotentialasaCurrency
Besides,JumentionedtheshrinkingvolatilityofBitcoinasonemorecriticalreasonthatcouldmakeitacurrency.ThemorefinancialinstitutionsinvolvedintheprocesswithBitcoin,thebetteritwillbeanattractiveinvestmentasset,henceamorestableprice.Thismeansgreaterchances,inturn,forBitcointobecomeameansofalow-volatilitycurrency.JuthinksthesechangeswillbeimportantinpositioningBitcoinasaneverydaycurrencyby2030.
Juemphasizedthat,inthefuture,theadoptionofstablecoinswillbevitalforthefutureofBitcoinasaformofcurrency.CompanieslikeStripeareexploringthestablecoininfrastructuretocreateagatewaytobroadercryptocurrencyusage.ThisstablecoinadoptionwillbehelpfulinthewayofBitcoinbeingthoughtofasalegitimatecurrency.
2028BitcoinHalving:ATurningPoint
HepredictedthatthesecondturningpointwouldbethefutureBitcoinhalvinginApril2028.TheeventwillfurthercutsupplyandspurwidespreaddebatesovertheroleofBitcoinwithinthemonetaryecosystem.WithreducedBitcoinvolatility,thematuredecosystemwillprovidegreaterassuranceofBitcoinbeingusedforday-to-daytransactions.
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