2024 bitcoin halving to trigger another market frenzy, says Thai exchange

Bitcoin (Image: Shutterstock)

Bitcoin is set for another bull run and market frenzy when it goes through another halving, Thailand's largest digital-asset exchange Bitkub Capital Group Holdings has said.

Halving is the process of ensuring that bitcoin's supply remains fixed at 21 million BTC, as envisioned by founder Satoshi Nakamoto. It takes place every four years, with the mining reward or the incentive earned for minting new blocks slashed by 50 percent every time.

Based on previous trends, Bitkub Capital CEO Jirayut Srupsiropa foresee said a golden period between 2024 and 2025 for the world's largest cryptocurrency and the crypto market in general. However, this will not be without the market enduring short, volatile periods of fluctuations and price corrections, he said.

Around 90 percent of bitcoin, or around 18.9 million BTC, are already in circulation. While it may seem that Bitcoin supply may soon run its course, network estimates suggest otherwise.

While it took almost 12 years for bitcoin market circulation to reach 90 percent since it was first mined in 2009, the remaining reserves of the virtual currency are set to sustain a little over 120 years, till 2140.

Currently, for each BTC mined, the miner earns a reward of around 6.25 bitcoins. Post the next halving event scheduled for 2024, this figure will come down to 3.25 bitcoind. In. 2028, the mining reward will be reduced to 1.625 bitcoins and so on.

Bitcoin and other cryptocurrencies saw a brutal start to 2022, with the crypto market capitalisation plummeting over 30 percent since the beginning of the year.

The market cap, currently at $1.77 trillion, has almost halved since it touched $3.1 trillion in November.

Valued at about $38,552.71, the world's largest cryptocurrency is almost 44 percent down from its all-time high of $68,789.73, which it touched in November 2021.

The cryptocurrency market is seeing increased institutional investor interest globally, and Thailand also plans to put in place regulations for the same. The country's deepening interest in this space is evident in crypto permeating its cafe-culture as well.

For instance, a cafe in north-eastern Thailand whips up not just coffee but also alternative investment opportunities for people in the surrounding Nakhon Ratchasima province and offers free investment consulting. It is also planning on starting its own cryptocurrency.

While commercial banks have been asked to steer clear of crypto, the severely-battered tourism of the country is eyeing a crypto-route to revival, with the Tourism Authority of Thailand contemplating launching its own coin, alongside collaboration with local cryptocurrency exchanges and companies to develop infrastructure for accepting crypto as a medium of exchange for tourism and ease investment in this asset class.