At the same time, conventional banks are showing an increasing interest for cryptocurrency investments.
Many industry leaders believe that the fourth Bitcoin halving in 2024 will cause the price of Bitcoin (BTC) to soar over the $100,000 level.
Davis Hui, the Vice President of Canaan, gave this interesting piece of information during a group talk at Canaan’s Avalon Bitcoin and Crypto Day (ABCD) in Singapore.
Prominent Bitcoin mining CEOs from Singapore, Kazakhstan, and the United Arab Emirates were on this panel, and they all predicted the same BTC price for 2024 due to the effect of the imminent halving of the Bitcoin mining incentive.
After the reward halving, the number of Bitcoins generated every block would decrease to 6.25, which Hui noted as an important milestone.
Traditional financial institutions are showing a growing appetite for Bitcoin investments. Hui said that the whole market capitalization of cryptocurrencies is now around $2 trillion, while industry titans like BlackRock manage a whopping $10 trillion in assets.
BTC’s price is likely to rise as a result of the halving’s effect on supply and the recent influx of institutional investment.
A number of the world’s leading asset managers have filed applications to the United States Securities and Exchange Commission (SEC) to create Bitcoin exchange-traded funds (ETFs), and Hui highlighted the importance of these developments.
Approval of these proposals is expected to release considerable funds into the cryptocurrency market, increasing demand for Bitcoin and contributing to the price increase of the cryptocurrency.
Hui also provided light on the harsh situation most miners confront in today’s hypercompetitive market, where record-high hash rates and network issues are cutting into miner profits.
As a result, miners who lose money after paying for their power are abandoning their businesses. Those who are mining nevertheless do so with an eye on the possible profits after 2024 when the price will be cut in half.
He also said that miners that can afford to upgrade to more powerful devices are more likely to keep making money in the long run.
Hui theorized that the high cost of power and administration might provide unique difficulties for American mining corporations.
Hui made the frank admission that Canaan, like many of its competitors, posted a loss in the first quarter of 2023, highlighting the lasting effects of the cryptocurrency bad market.
The possible market dynamics that might emerge as a consequence of the fourth Bitcoin halving, however, have kept industry members enthusiastic about the future.