Key Points
- Ki Young Ju, CryptoQuant’s CEO, suggests that the rise in Bitcoin mining difficulty could indicate Bitcoin’s potential as a digital currency.
- Major fintech companies are expected to drive the mass adoption of stablecoins, thereby mainstreaming Bitcoin, according to Ju.
Ki Young Ju, the CEO of CryptoQuant, has made a prediction about the future of Bitcoin. He believes that the increasing difficulty of Bitcoin mining could be a sign of Bitcoin’s potential to become a mainstream digital currency.
Bitcoin Mining Difficulty and Its Implications
Data reveals that the difficulty of Bitcoin mining has been on an upward trend over the past three years. Ju explained that this increase, which stands at 378%, signifies heightened competition.
This rise in mining difficulty is largely due to the entry of big mining companies, backed by institutional investors, into the industry. This scenario has made it challenging for individual miners to penetrate the industry. However, Ju sees this as a positive development for Bitcoin.
Ju wrote, “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.”
Recent Developments in the Crypto Mining Industry
In related news, TeraWulf, a crypto mining firm, recently announced its plan to offer $350 million in convertible senior notes due for 2030 to qualified institutional buyers. The company also mentioned the possibility of an additional $75 million offering if initial buyers exercise their option within a 13-day window post-issuance.
Moreover, three major Bitcoin mining companies in the U.S, Riot Platforms, Marathon Digital, and CleanSpark, have supported a new political action committee. This committee aims to back pro-crypto candidates in key swing states and will launch a $2 million digital ad campaign targeting Pennsylvania and Texas voters.
Ju further stated that the implementation of more crypto regulations would lead to more major fintech companies driving the mass adoption of stablecoins within three years. He added that increased familiarity with blockchain wallets and stablecoins would facilitate Bitcoin’s entry into the mainstream.
Ju is of the opinion that by the next halving event in April 2028, Bitcoin will begin to be seriously considered as a currency. “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 the other hand, economists from the European Central Bank have expressed that Bitcoin has not succeeded as a global decentralized digital currency or a financial asset with a continually rising value. Ulrich Bindseil and Jürgen Schaaf, the economists, argue that transactions involving Bitcoin are still inconvenient, slow, and costly.