Bitcoin in 2024: A Year of Opportunities and Challenges

In episode 41 of the Big Tech Little Tech podcast, Shaun and I discuss some of the biggest topics in tech right now, including Bitcoin’s prospects for 2024. To me, it’s no coincidence in the timing of Bitcoin ETFs just months ahead of the next Bitcoin Halvening. Here’s my thinking and a clip of how Shaun and I covered it in the show.

Introduction

Bitcoin has been making waves in the financial world for over a decade, and it shows no signs of slowing down. As we look ahead to the year 2024, there are two significant events on the horizon that could shape the future of Bitcoin: the halvening and the approval of exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).

The Halvening:

Every four years, the number of new Bitcoins created through mining is cut in half in an event known as the halvening. This process helps combat inflation and has historically led to a spike in the price of Bitcoin. The upcoming halvening in 2024 will be the fourth in Bitcoin’s history, and there is a possibility that it could have a substantial impact on the cryptocurrency market once again. As the supply of new Bitcoins diminishes, the demand for them tends to increase, driving up their value.

SEC Approval of ETFs:

In a significant development for the mainstream adoption of Bitcoin, the SEC recently approved the creation of exchange-traded funds (ETFs) for cryptocurrency. ETFs provide a means for investors to gain exposure to Bitcoin without directly owning it. This approval opens doors for ordinary investors, including those with pension funds and savings vehicles, to participate in the cryptocurrency market. The SEC’s decision marks a crucial step towards legitimising Bitcoin as a credible investment asset.

The Curious Case of the Fake Tweet:

The approval of ETFs was not without its share of drama. Just before the official announcement, a tweet from the SEC’s Twitter account claimed that the ETFs had been approved, causing a 10 percent surge in the price of Bitcoin. However, the SEC quickly clarified that their Twitter account had been hacked, and the tweet was a fake. The following day, the official announcement of the ETF approval was made. While this incident raises concerns about the transparency and security of information dissemination, it does not diminish the significance of the SEC’s decision to approve Bitcoin ETFs.

Implications for Bitcoin:

The approval of ETFs and the upcoming halvening in 2024 are not isolated events but rather interconnected pieces of Bitcoin’s evolving narrative. The availability of ETFs makes Bitcoin more accessible to a broader range of investors, signaling a growing acceptance of the cryptocurrency in traditional financial circles. This additional credibility opens up doors for further adoption and potential price appreciation in the future.

Furthermore, the upcoming halvening adds another layer of potential excitement to Bitcoin’s future. Historically, halvenings have been accompanied by significant price surges, and the combination of the halvening and the availability of ETFs in 2024 could create a perfect storm for Bitcoin’s value. As supply decreases, demand could skyrocket, driving prices to new heights.

Takeaway:

Bitcoin stands at a crucial juncture in its journey towards mainstream adoption. The combination of the halvening and the approval of ETFs by the SEC holds immense potential for the cryptocurrency. While there may be challenges along the way, such as the security concerns arising from fake tweets, these events collectively indicate a growing interest and acceptance of Bitcoin in the financial world.

Investors and enthusiasts alike will closely watch the developments in the coming years, anticipating both opportunities and challenges. Bitcoin’s journey continues to be a captivating one, and 2024 promises to be a year that could further establish its position as a prominent player in the global financial landscape.

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Investors and enthusiasts alike will closely watch the developments in the coming years, anticipating both opportunities and challenges. Bitcoin’s journey continues to be a captivating one, and 2024 promises to be a year that could further establish its position as a prominent player in the global financial landscape.