Adam Back, the CEO of Blockstream and a prominent figure in Bitcoin’s early development, boldly predicts that Bitcoin will surge to a remarkable value surpassing $100,000 before the next halving event in 2024. Demonstrating his confidence, he has placed a million satoshis as a wager on this belief.
Back agreed to the wager with an anonymous user known as @Vikingobbitcoin. According to @Vikingobbitcoin, Bitcoin will not reach $100,000 until 2025. The bet is centered around the date of March 31, 2024, which falls approximately one month before the anticipated halving event. During this event, the reward for mining new blocks will be reduced by half.
According to Back, it is anticipated that the price will experience a significant surge before the halving event, mirroring previous patterns. In February, he expressed his belief that Bitcoin could reach an impressive $10 million by the sixth halving in 2032.
However, the amount he is betting lacks impressiveness. Currently valued at only $290, a million satoshis may seem small (although it could reach over $1,000 if his prediction materializes). It’s important to understand that a satoshi is the smallest unit in Bitcoin, with one BTC consisting of 100 million satoshis.
Back’s estimated net worth ranges between $50 and $300 million, implying minimal risk in his bet. Nonetheless, he finds himself in good company as Jan3 CEO Samson Mow shares a similar optimism, commenting that he expects Bitcoin to reach a new all-time high before the halving rather than afterward.
The bet has garnered sarcastic responses from fellow X users, yet it also signifies a growing bullish sentiment among Bitcoin enthusiasts and analysts leading up to the 2024 halving.
Why Bitcoin Halving Matters
The halving event holds significant importance for Bitcoin. It signifies a reduction in the supply of newly minted coins every 10 minutes. This deliberate scarcity effect can potentially drive up the price, given that demand remains stable or even rises.
The halving event takes place approximately every four years, specifically after every 210,000 blocks. The most recent halving occurred on May 11, 2020, reducing the block reward from 12.5 BTC to 6.25 BTC. Analysts expect the next halving to transpire around April or May 2024 when block 840,000 is reached.
The halving event in Bitcoin mining has a significant impact on both its profitability and security. This is due to reduced incentives for miners to process transactions and maintain network security. Nevertheless, most miners anticipate this occurrence and incorporate it into their operational strategies.
According to Charles Edwards, the founder of Capriole Investments, Bitcoin is set to become the “hardest asset in the world” due to the upcoming halving. He also believes that the market is entering a new bull cycle. In a recent interview with Cointelegraph, Edwards shared these insights.
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“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
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