Contributing to this optimistic outlook: the halving of bitcoin, or, more frighteningly, “the halving.” Even while halving is often a case of “buy the hype, sell the news,” it does have the effect of increasing the value of bitcoin. Bitcoin, being a limited asset, has its supply of tokens cut in half every four years by an algorithm (hence the name).
According to Antoni Trenchev, co-founder of crypto lender Nexo, “the halving” in 2024 will be the pinnacle geek event for Bitcoiners. “According to historical trends, the peak of Bitcoin might not occur until 2025, with 2024 serving as a prelude to the main event.”
From its all-time high of 69,000 in November 2021, bitcoin could soar over $100,000, according to Trenchev, thanks to the “double turbo boost” from the spot ETF approval and the halving, anticipated in the spring.
“Just like Bitcoin, the road to $100,000 will be paved with unexpected potholes and double-digit drops,” Trenchev said.
“Transfer money from the impatient to the patient,” as Warren Buffett put it, a term used by one of his most vocal critics.
Anthony Scaramucci, creator of SkyBridge Capital and a lifelong advocate of bitcoin, has an even more bullish forecast. For digital media site Semafor, he predicted that Bitcoin would conclude the year at $140,000.
Miners rely on transaction fees to keep their operations running; therefore, this would hurt them, says the billionaire. If they don’t see any return on investment, they may decide to turn off their computers, which would be catastrophic for the Bitcoin network.
Envision a world where the biggest wealth managers in China and the West own 100% of the Bitcoins in circulation. This develops naturally as a result of the widespread belief that money is also a store of worth. People are too lazy or confused to acquire Bitcoin and store it in a self-custodial wallet, so they invest in Bitcoin ETF derivatives instead.
Now that a small number of corporations control 100% of the Bitcoin supply and see no practical purpose for the Bitcoin network, the price of Bitcoin will remain static indefinitely. As a consequence, miners stop using their equipment due to financial constraints caused by the rising cost of electricity. “Goodbye, Bitcoin!” Hayes firmly said. “Bitcoin is utterly destructible.”
After finishing his essay, Hayes goes on to hypothesize on what may happen to cryptocurrencies if Bitcoin were to experience a crisis. He speculates that Bitcoin’s “death” may pave the way for a new crypto-monetary network, which might be an updated Bitcoin or something entirely new.
With the US Securities and Exchange Commission (SEC) set to approve the project in early 2024, the anticipation around BlackRock’s Bitcoin ETF is driving the hype. There has been talk of probable mass approval for Bitcoin ETFs early in the new year, and a recent leak has shown that the SEC has set a deadline of December 29 for “final updates” on these applications.
When it comes to building wealth, Blackrock is a player. Their “hard” labor consists of acquiring assets, putting them in a metaphorical vault, issuing marketable securities, and charging management fees. They don’t put their clients’ assets to use, which might be problematic for Bitcoin in the worst-case scenario.
“Hey,” Hayes said. The crypto market might undergo a dramatic shift in 2024 as a result of new regulations and the involvement of powerful Wall Street figures. But this is the beginning of the end for the biggest cryptocurrency in the world according to Hayes. Bitcoin will perish due to a lack of usage if it is regulated like any other financial asset by the state. When Bitcoin crashes, it makes room for a new cryptocurrency network to emerge and take its place. This network may just be Bitcoin 2.0, an upgraded version of the original, or it might be something entirely new. Whatever the situation may be, the people will regain ownership of a medium of exchange and a decentralized financial system. We will hopefully learn our lesson and not give the bald men the key to our private lives the second time around.
Right now is when you should purchase Bitcoin. Last but not least, Hayes stresses that although the greatest moment to invest in Bitcoin has passed, the second best one is right now. This declaration exemplifies how the investing world is beginning to see the value of cryptocurrencies as a hedge against the depreciation of fiat currencies.
Nouriel Roubini, a prominent personality renowned for his cautious views on cryptocurrencies, has been publicly insulted by him, and he has even used the term “talentless crook clown” to describe him. Using Roubini’s piece on “flatcoins” from the Financial Times, Hayes says that these new ideas are just another effort to change the subject away from the potential dangers of fiat currencies. Roubini counters that these criticisms are unfounded and that cryptocurrencies are not a viable alternative to traditional currencies.
In conclusion, the upcoming halving of bitcoin in 2024 is projected to have a significant impact on its value. Experts like Antoni Trenchev and Anthony Scaramucci have provided bullish forecasts, suggesting that bitcoin could reach new all-time highs. However, there are also concerns about the potential implications for miners and the concentration of bitcoin ownership among a few corporations.
Additionally, the approval of the BlackRock Bitcoin ETF and the introduction of new regulations by the SEC could lead to a dramatic shift in the crypto market. Some, like Hayes, believe that this could mark the beginning of the end for bitcoin, while others anticipate the emergence of a new and improved cryptocurrency network.
Regardless of the outcome, the increasing interest in cryptocurrencies as a hedge against fiat currency depreciation is undeniable. Investors are encouraged to carefully consider the risks and opportunities associated with bitcoin and other digital assets.
However, it is crucial to remember that predicting the future of cryptocurrencies is highly speculative, and market conditions can rapidly change. Ultimately, the evolution of the crypto market and the fate of bitcoin will depend on various factors, including investor sentiment, regulatory developments, and technological advancements.