Bitcoin’s mining landscape has drastically shifted in recent years, with mining difficulty surging by 378% over the past three years. This increase points to a significant role institutional investment could play in Bitcoin’s stability by the year 2030.
Institutional Impact on Bitcoin Mining
Over the last three years, institutional investors have driven Bitcoin mining competition to unprecedented levels, leading to a 378% rise in mining difficulty. This surge has created barriers for individual miners, as large-scale operations dominate the network’s computing power. However, Ki Young Ju, CEO of CryptoQuant, suggests that these developments might pave the way for Bitcoin to stabilize as a currency by 2030.
Ju predicts that institutional influence will help reduce Bitcoin’s volatility, which has historically been a key characteristic of the cryptocurrency market. He believes the growing presence of institutional players could bring a level of stability previously unseen in the space.
Bitcoin Stability and Institutionalization
Bitcoin and the broader cryptocurrency market are notoriously volatile, often seen as speculative assets. However, the increasing centralization of mining due to institutional investors could lead to a more stable Bitcoin ecosystem. In a recent social media post, Ju highlighted that major fintech players are expected to push for mass adoption of stablecoins within the next three years.
Ju also foresees that discussions about Bitcoin being used as a legitimate currency will intensify after the next Bitcoin halving event in 2028, with potential widespread adoption by 2030.
Bitcoin Layer-2 Solutions vs. Wrapped Bitcoin
While Bitcoin’s layer-2 (L2) solutions, such as the Lightning Network, have been promoted as key to its scalability, their adoption has lagged behind other blockchain ecosystems supported by venture capital. According to Ju, institutional backing will be crucial in driving the adoption of Bitcoin’s L2 solutions.
However, competition is fierce, with alternatives like Wrapped Bitcoin (WBTC) offering seamless integration of BTC into various decentralized ecosystems without the need for complex L2 infrastructures.
Price Stability: A Key to Bitcoin’s Future
Recent price analysis indicates that Bitcoin’s current price level around $65,000 has become a critical support zone, especially after briefly touching $69,000 on October 21 for the first time since June. Keith Alan, co-founder of Material Indicators, believes that if Bitcoin can hold above its 21-week moving average without wicks, it could confirm the short-term uptrend and spark bullish momentum.
As the year progresses, market analysts will closely monitor Bitcoin’s performance amid macroeconomic data and potential market volatility, with many anticipating a retest of Bitcoin’s all-time high.
Conclusion
The future of Bitcoin as a stable currency may hinge on the ongoing institutionalization of its mining and infrastructure. With the rise of institutional investment, layer-2 solutions, and Wrapped Bitcoin, the cryptocurrency could see reduced volatility and increased stability, setting the stage for Bitcoin’s potential use as a currency by 2030.
