Executives from prominent mining and manufacturing firms are predicting that the upcoming fourth Bitcoin halving, scheduled for 2024, could push the price of Bitcoin (BTC) past $100,000. During a panel discussion at Canaan’s Avalon Bitcoin and Crypto Day (ABCD) in Singapore, Bitcoin mining ecosystem executives from Singapore, Kazakhstan, and the United Arab Emirates shared their price predictions for BTC in 2024.
Canaan vice president Davis Hui, who was part of the panel, expressed his belief that the price of Bitcoin could reach such heights as a result of the effects of the latest mining reward halving. With the reward halving, the supply of Bitcoin would be significantly reduced to 6.25 BTC per block. Additionally, traditional financial institutions have shown increased interest in investing in the cryptocurrency sector.
Hui highlighted the potential impact of large asset managers like BlackRock, which currently holds $10 trillion of assets under management. In comparison, the overall cryptocurrency market cap is only $2 trillion. Hui anticipates that as more institutional money pours into the market, the demand for BTC will increase while the supply decreases, leading to a higher price.
The Canaan vice president also pointed out that many miners are struggling to operate in the highly competitive market conditions. The all-time high hash rates and network difficulties directly affect miner profitability. Miners who are unable to cover their electricity costs with their earned mining rewards will simply have to shut down their machines. On the other hand, those who continue to operate do so with the hope of benefiting from the potential price surge ahead of the 2024 halving.
Hui also emphasized the importance of upgrading to more efficient and powerful mining machines to maintain profitability. He believes that mining companies in the United States may face particular challenges due to high electricity and administrative costs. Hui acknowledged that Canaan itself reported a financial loss in the first quarter of 2023, which reflects the impact of the prolonged cryptocurrency bear market.
The predictions made by these executives are not without merit. The halving events in the past have historically led to significant price increases for Bitcoin. The reduction in mining rewards creates a scarcity of new coins entering the market, which often leads to increased demand and higher prices. Furthermore, the growing interest from institutional investors further supports the bullish outlook for BTC.
In conclusion, executives from mining and manufacturing firms are foreseeing a future where the price of Bitcoin surpasses $100,000 as a result of the upcoming halving in 2024. The reduced supply of Bitcoin combined with increasing institutional interest in the cryptocurrency market are seen as catalysts for this potential price surge. The industry will likely witness the exit of less profitable miners, while those who can upgrade their mining equipment will strive to remain competitive. Although there are challenges ahead, the overall sentiment among these executives is optimistic about the future of Bitcoin.
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