Fred Thiel, CEO of Marathon Digital Holdings, a publicly traded Bitcoin mining company, has spoken about the much-awaited event of 2024, which is Bitcoin mining. The Bitcoin halving in April 2024 will be a big deal for Bitcoin.
In an interview with Thinking Crypto, Thiel expressed concerns about the upcoming Bitcoin “halving,” which occurs when the rewards for mining new Bitcoin blocks are reduced by half. He mentioned that if Bitcoin’s price doesn’t increase enough to make mining profitable after the halving, many miners could face difficulties, particularly those with high energy consumption machines.
“If the price of Bitcoin isn’t where it’s profitable for them to mine post having, I think they’re going to be in a lot of trouble,” he said.
Looking ahead, Thiel expressed excitement about the innovation in the crypto space and the potential for real-world use cases to drive adoption. He believes that blockchain technology will find applications in various industries as it evolves, leading to broader adoption and growth in the crypto market.
Bitcoin halving takes place roughly every four years after mining 210,000 blocks. It cuts the number of bitcoins miners get for verifying transactions in half. According to Blockware Solutions’ new report, after the upcoming halving, the price of Bitcoin could skyrocket, potentially increasing by a whopping 1,250% from its current value.
Regarding the potential approval of Bitcoin spot ETFs and increased demand, Thiel mentioned, “I’m not going to comment on whether we’re getting calls or not because, you know, we get calls all the time. But we’re not necessarily aware of who our counterparties are when we do sell Bitcoin.” He also noted the uncertainty surrounding ETF approvals and suggested that the SEC might approve several ETFs simultaneously.
