Founder and CEO of CryptoQuant, Ki Young Ju, recently discussed the implications of rising Bitcoin mining difficulty, suggesting it could indicate Bitcoin’s evolution into a digital currency.

Rising Bitcoin Mining Difficulty

According to data from CryptoQuant’s live chart, Bitcoin mining difficulty has surged by 378% over the past three years. This significant increase reflects heightened competition within the mining industry. Ki Young Ju attributes this rise largely to the influx of large mining companies backed by institutional investors, which dominate the market and create higher entry barriers for individual miners. Nevertheless, Ju views this trend positively for Bitcoin’s development.

“As institutional involvement grows, entry barriers rise, reducing Bitcoin’s volatility and its appeal as an investment asset. By the 2028 halving, Bitcoin’s potential as a low-volatility currency will increase,” Ju wrote in his post.

Bitcoin’s mining difficulty consistently hits all-time highs. For instance, while 50 BTC could be mined with a single PC in 2009, today’s scenario is vastly different.

Institutional Investments in Bitcoin Mining

On the same day as Ju’s statement, crypto mining firm TeraWulf announced plans to offer $350 million in convertible senior notes due for 2030 to qualified institutional buyers. The firm also mentioned an additional $75 million offering, contingent on initial purchasers exercising their option within a 13-day window post-issuance.

Additionally, three major U.S.-based Bitcoin mining companies—Riot Platforms, Marathon Digital, and CleanSpark—have backed a new political action committee aimed at supporting pro-crypto candidates in key swing states. This committee plans to launch a $2 million digital ad campaign targeting voters in Pennsylvania and Texas.

Future of Bitcoin as a Currency

Ju further explained that increasing crypto regulations and the adoption of stablecoins by major fintech companies will drive mass adoption within three years. He emphasized that familiarity with blockchain wallets and stablecoins will facilitate Bitcoin’s mainstream acceptance.

He believes that Bitcoin will start to be seriously considered as a currency by the next halving event in April 2028.

“Satoshi aimed for Bitcoin to be ‘P2P Electronic Cash,’ not digital gold. His vision may be realized by 2030 through the maturation of Bitcoin’s ecosystem and the reduction of its volatility,” said Ju.

Challenges and Criticisms

Despite these positive projections, some experts remain skeptical. On February 25, European Central Bank economists Ulrich Bindseil and Jürgen Schaaf argued that Bitcoin has failed as both a global decentralized digital currency and a financial asset with continually rising value. They claim that transactions involving Bitcoin remain inconvenient, slow, and costly.

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