Exchange platform CEO’s advice to Thai investors as bitcoin set for halving

In a group interview on Thursday, a week before the halving, he described the event as a global phenomenon as bitcoin and other cryptocurrencies are now widely accepted for asset value storage and investment. There is no doubt that the fourth bitcoin halving will receive widespread attention, including in Thailand, he said.

"Four years ago, there were very few discussions about the halving. However, the current widespread media attention is a clear indication of bitcoin's growing acceptance by the mainstream," he said.

He said the three previous halving had all resulted in a tremendous hike in the value of bitcoin, and he believed that this time would be no different.

However, the higher the return, the greater the risk. He advised investors to learn and understand more about bitcoin by focusing on the upcoming halving.

"I believe that an increasing number of Thai investors are already familiar with the basic concept of this digital coin. Still, it's an opportunity to approach it from the actual event," Nirun said.

While refusing to speculate how much bitcoin would rise this time as it would be a violation of his company policy, he referred to other analysts who had predicted that after the halving, the coin could soar to US$150,000 by the end of the year.

According to Binance, the world's largest cryptocurrency exchange platform, the price of bitcoin is currently at $70,690.60 as of Thursday.
Nirun described the bitcoin halving as a critical event for the digital asset market. It has been built into bitcoin's design since its inception in 2009.

This pre-programmed mechanism reduces miners' block rewards by half after 210,000 blocks are mined, which happens roughly every four years.

The move ensures that bitcoin supply remains controlled and scarce, in contrast to the inflationary nature of traditional fiat currencies. Bitcoin's deflationary nature distinguishes it as a distinct asset class, with potential value as an alternative investment as well as a long-term store of value, Nirun explained

"This scarcity mechanism significantly impacts the digital asset landscape, making an understanding of its implications more important than ever," he said.

As the halving restricts the influx of new bitcoins, he believes market volatility will continue due to the ongoing interplay between supply and demand. This volatility may present both risks and opportunities for investors, he said.

However, the resulting scarcity may lead to long-term price appreciation for bitcoin, cementing its position as an appealing alternative investment.

While miners securing the network may face initial revenue losses due to the lower block reward, bitcoin's potential value increase may eventually mitigate these concerns.

Furthermore, the halving could serve as a catalyst for increased institutional interest, especially given the rise of bitcoin exchange-traded funds, he said.

Meanwhile, Nirun pointed out that this event had the potential to spur innovation in the blockchain ecosystem, potentially accelerating the development of protocols such as BRC-20 tokens and the Ordinals Protocol, resulting in further exploration of the technology's capabilities.

Still, given bitcoin's high volatility, investors should consider investing around 5% of their portfolio, depending on how much risk they are willing to take, Nirun said.

Aside from the impressive price increase, he believes that other digital assets also will benefit from the bitcoin hike this time as well. The move ensures bitcoin's role as a store of value, just as gold does.

As a result of the halving, bitcoin will play an increasingly important role as a digital asset and become a preferred alternative asset for investment, he said.

"By demystifying the halving and by fostering crypto literacy, we [Binance TH by Gulf Binance] aim to equip users with the confidence to navigate the dynamic digital asset landscape. This campaign will feature educational elements to spark user interest and educate them about bitcoin, its price history, and the halving phenomenon," he said.

Bitcoin, created by a man who goes by the pseudonym Satoshi Nakamoto, became the world's first successful digital currency when it was launched in 2009. This decentralised and limited innovation allows users to directly buy, sell, and trade, bypassing traditional intermediaries such as banks.