Highlights:
- CryptoQuant CEO says Bitcoin will likely be used as a currency by 2030.
- This comes on the heels of reduced asset volatility as more institutional investors participate.
- He added that Satoshi Nakamoto intended BTC for P2P exchanges, not digital gold.
CryptoQuant CEO Ki Young Ju states that Bitcoin might become a currency in 2020. Over the years, there has been controversy surrounding Bitcoin’s proper use case as a store of value, digital gold, or a transacting asset. The global adoption of the asset has made it increasingly possible to achieve both; however, several factors have made the latter a bit difficult.
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Young Ji Makes Case for Bitcoin
The founder of the on-chain analytics platform explained the possibility of Bitcoin being used for regular transactions. A key issue to solve is asset volatility, which leads to huge short-term swings. However, this will be reduced over the years as adoption grows. A look at the mining difficulty buttresses this point showing the level of competition to mine the assets.
#Bitcoin will likely be used as a "currency" around 2030.
Bitcoin's mining difficulty, which reflects the intensity of competition, has consistently hit all-time highs, increasing by 378% over the past three years.
While 50 BTC could be mined with a single PC in 2009, it has… pic.twitter.com/lY8pRreZCl
— Ki Young Ju (@ki_young_ju) October 24, 2024
In the three years, BTC mining difficulty has hit 378% making it difficult for a solo miner to participate in the scene. With these events, the presence of institutional investors makes the asset less volatile and a more appealing currency. He projected that by 2028, BTC’s potential as a less volatile asset will be actualized. The mass adoption of an asset reduced the likelihood of skyrocketing price swings ensuring more stability.
Satoshi Wanted BTC as a Currency
The surging price of Bitcoin in the last decade has drawn several speculations on the asset. Many adopters project BTC as a store of value and digital gold for profit citing periodic highs. Macro factors like inflation have also fueled the narrative with many turning to BTC as a haven protecting value.
However, Young Ji explained that Satoshi Nakamoto, the pseudonymous creator of Bitcoin, did not aim for it to be a digital gold. His vision was for a P2P electronic cash system that could be implemented in 2030.
Institutional Activity Draws Timeline
In previous years, institutions were opposed to Bitcoin and crypto assets with the government issuing warnings on the industry. However, an influx of institutional firms has changed the narrative with investors developing technologies and onboarding interoperable systems. Apart from spot Bitcoin ETF inflows, which have increased the mainstream utility, infrastructural investment is also critical to the goal. Finally, Young Ji points to the halving as a major factor.
“By around April 2028, during the next halving, Bitcoin’s potential use as a “currency” will start to be seriously discussed as volatility decreases further and the ecosystem matures.”
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