4 weeks ago
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Founder and CEO of CryptoQuant, Ki Young Ju, stated a rise in Bitcoin mining difficulty could signal the possibility of Bitcoin becoming a digital currency.
According to data from CryptoQuant’s live chart, Bitcoin(BTC) mining difficulty has been on the rise in the past three years. CryptoQuant CEO Ki Young Ju explained that Bitcoin’s mining difficulty has increased by 378%, indicating a rise in competition.
An increase in mining difficulty is caused in large part from the influx of large mining companies that are backed by institutional investors which dominate the current mining industry. This has made it difficult for individual miners to enter the industry. However, Ju views this as a good thing for Bitcoin’s development.
“As institutional involvement grows, entry barriers rise, reducing Bitcoin’s volatility and its appeal as an investment asset. By the 2028 halving, Bitcoin’s potential as a low-volatility currency will increase,” Ju wrote in his post.
#Bitcoin will likely be used as a "currency" around 2030.
Bitcoin's mining difficulty, which reflects the intensity of competition, has consistently hit all-time highs, increasing by 378% over the past three years.
While 50 BTC could be mined with a single PC in 2009, it has… pic.twitter.com/lY8pRreZCl
On the same day, crypto mining firm TeraWulf announced plans to offer $350 million in convertible senior notes due for 2030 to qualified institutional buyers. The firm said the offering may include an additional $75 million if initial purchasers exercise their option within a 13-day window post-issuance.
Additionally, three of the largest Bitcoin mining companies in the U.S, Riot Platforms, Marathon Digital, and CleanSpark, have backed a new political action committee to support pro-crypto candidates in key swing states. The committee will launch a $2 million digital ad campaign aimed at Pennsylvania and Texas voters.
Ju went on to explain that with more crypto regulations implemented, the more major fintech companies will be expected “drive the mass adoption of stablecoins within three years.” He added that more familiarity with blockchain wallets and stablecoins will help bring Bitcoin into the mainstream.
Therefore, he believes that Bitcoin will start to seriously be considered as a currency by the next halving event in April 2028.
“Satoshi aimed for Bitcoin to be “P2P Electronic Cash,” not digital gold. His vision may be realized by 2030 through the maturation of Bitcoin’s ecosystem and the reduction of its volatility,” said Ju.
On Feb. 25, European Central Bank economists said that Bitcoin has failed as both a global decentralized digital currency and as a financial asset with a continually rising value.
The two economists, Ulrich Bindseil and Jürgen Schaaf, argue that transactions involving Bitcoin are still inconvenient, slow, and costly.
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