Key Points
- Bitcoin could potentially become a global currency by 2030, according to CryptoQuant CEO Ki Young Ju.
- This prediction is based on the increasing institutional investment in Bitcoin mining and related operations.
Bitcoin has long been regarded as a reliable store of value and a game-changer in the investment world. Its potential future, however, is now being discussed in new and previously unimagined ways.
Known for being a significant hedge against inflation, Bitcoin’s future appears to hold even more promise. According to Ki Young Ju, the CEO of CryptoQuant, Bitcoin could evolve into a stable currency by 2030. If it achieves this stability, it could potentially become a global currency.
Bitcoin’s Future Stability
Ju’s prediction is based on the increasing institutional investment in Bitcoin mining and related activities. This trend has led to a 378% increase in Bitcoin mining difficulty over the past three years, driven by large players entering the mining industry.
Ju believes that the continued increase in mining difficulty could be beneficial for Bitcoin, potentially transforming it from a speculative investment into a stable currency. Despite its volatility, which often makes it unreliable for daily use, Ju suggests that the growing involvement of large financial institutions could resolve this stability issue.
In a recent post on X, Ju highlighted that major financial technology companies are expected to drive the mass adoption of stablecoins within the next three years. Stablecoins are digital currencies designed to reduce volatility, often backed by stable assets like the US dollar. Ju predicts that by 2028, when Bitcoin undergoes its next “halving event”, discussions around Bitcoin becoming a mainstream currency will intensify.
Factors Impacting Bitcoin’s Stability
There are several factors that suggest Bitcoin’s infamous price swings may start to lessen soon. One factor is the development of Layer-2 solutions, such as the Lightning Network. While these solutions have lagged behind venture capital-backed blockchain alternatives, Ju claims their success also depends on the amount of institutional support they receive, which ultimately helps Bitcoin handle more transactions efficiently.
It’s worth noting that Bitcoin’s Layer-2 solutions face competition from alternatives like Wrapped Bitcoin, which integrates Bitcoin into various ecosystems without the complications of Layer-2 infrastructure.
Whether Bitcoin will become a stable currency in the future largely depends on its price. Currently, the $65,000 price level is a crucial support point after Bitcoin recently hit $69,000, its highest since June. Analysts, including Keith Alan, co-founder of Material Indicators, have predicted that if Bitcoin can hold above its 21-week moving average, a short-term uptrend could continue. Some experts even suggest that Bitcoin could retest its all-time high before the end of the year. However, macroeconomic factors may yet affect its performance.
