By Nick Hamilton | United States
As we start to finally hit the middle of 2018, some are already making bold predictions for Bitcoin’s price in 2019. One of those, an investment firm called Fundstrat, predicts that it could reach as high as $64,000 by the end of 2019; over six times it’s current value. The New York based firm made these assertions in a report written up by Sam Doctor. Doctor is one of the firm’s Managing Director and Quanta-mental Strategists.
The report asserts that the expected price will be around $36,000 for one bitcoin. However, the expected range of the price will be from as low as $20,000 to as high as $64,000. Their reasoning, however, is different from many other predictions that we’ve seen this year.
The rationale has to do with mining, which is a computer solving mathematical equations and getting rewarded for it with cryptocurrency. In order for this to occur, the computer relies on something called “hash power,” or power to guess the solution. Fundstrat projects a 350% increase in this hash power. Thus, the price of Bitcoin will rise.
“We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range,” Doctor said in his report. “The primary net sellers, in our view, are bitcoin miners, and the rest are transactions between investors.”
Now, the real question is whether the currency will be able to sustain that number when it hits that mark. Bitcoin has proven to have some difficulties sustaining itself, dropping over $10,000 in just a few months. However, with this new innovation in hash power, Bitcoin could absolutely explode in the next couple of years.
As of Thursday, May 10th, the cryptocurrency has fallen 1.55% to $8,290.