Executives from distinguished mining and manufacturing companies imagine market forces ensuing from the fourth Bitcoin halving scheduled in 2024 may drive the value of Bitcoin (BTC) previous $100,000.
Magazine editor Andrew Fenton spoke to Canaan vp Davis Hui following a panel dialogue at Canaan’s Avalon Bitcoin and Crypto Day (ABCD) in Singapore.
Hui and a panel that included Bitcoin mining ecosystem executives from Singapore, Kazakhstan and the United Arab Emirates all provided BTC value predictions round $100,000 in 2024 ensuing from the consequences of the most recent Bitcoin mining reward halving.
Hui informed Cointelegraph that the provision of Bitcoin can be drastically decreased with the reward halving down to 6.25 BTC per block, whereas conventional finance establishments are displaying elevated curiosity in investing in the sector:
“What about BlackRock? They’re holding onto $10 trillion of assets under management. The overall cryptocurrency market cap is $2 trillion — they have five times more than that.”
The Canaan VP stated his prediction was closely influenced by the result of quite a lot of Bitcoin exchange-traded fund purposes lodged with the United States Securities and Exchange Commission by among the world’s largest asset managers.
“This money will come in, the BTC demand will increase, while the supply has decreased, and the price will increase.”
Hui additionally famous that it had change into troublesome for many miners to proceed working in extremely aggressive market circumstances, with all-time hash charges and community difficulties instantly consuming into miner profitability.
Those who couldn’t cowl electrical energy prices with the Bitcoin mining rewards earned will merely shut off these machines, whereas those that proceed working will achieve this with a view of the potential upside forward of the 2024 halving, he stated.
Miners who can improve to extra environment friendly and highly effective machines are in a position to preserve higher profitability, he stated. Hui predicts that mining corporations in the U.S. could be significantly onerous pressed, given excessive electrical energy and administrative prices.
Hui additionally conceded that Canaan was among the many business corporations to have reported a monetary loss in the primary quarter of 2023, highlighting the impression of a protracted cryptocurrency bear market.
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