Wednesday, September 18, 2019

Fundstrat Predicts Bitcoin $36K Price Based On Mining Costs

Thomas Lee, the co-founder of Fundstrat, posted today on Twitter how they believe the price of Bitcoin could reach $36,000.00 USD by the end of 2019.

Fundstrat is an investment research firm that advises investors about market opportunities, letting them know which assets will have better performance. All of this based heavily on data analysis studies with a quantitative approach. Lately they have been actively monitoring the Cryptocurrency market, allocating resources towards trying to explain and predict pricing evolution.

Their conclusion comes after a paper published by Sam Doctor, Fundstrat’s head of research, found a relation between mining break-even prices and the minimum support price that Bitcoin has experienced. He uses this assumption to make a relationship between the two allowing him calculate that price. He states that as prices go down, miners; the natural bitcoin sellers, reduce their offer into the market waiting for a better price to happen. The price stabilization is achieved by the reduction of bitcoin availability.

Bitcoin Mining is the truly the underlying power that allows bitcoin, and many other cryptocurrencies to function in the way they do. ‘Miners’ use specialized (or in some cases even normal) computer systems to solve complex cryptographic problems allowing for bitcoin transactions to go through, and as a reward for their efforts, they are awarded a small amount of bitcoin for every transaction they produce.

Sam Doctor thinks that with the growth of the hash power, (the number of miners operating in the network) the number of bitcoin hoarded will be significantly higher, and the support prices will hold up much higher.

Related Article:  Paris Protests Support Bitcoin in Unchecked Government Inflationary Action

Some have criticized this theory by saying that the causation between the two events is too weak, and that hash power growth follows price growth, not the other way around. This is because miners await high bitcoin prices to buy more mining hardware. That is the case of Ari Paul, CIO of Blocktower Capital, another cryptocurrency investment firm, who stated his posture about it on a tweet thread can be found here.

This prediction goes along with the former positive prediction of Thomas Lee, that believes that at the end of this year, bitcoin price will be of $25,000. Also, he predicted that this week, prices will rise due to the Consensus 2018 Convention, the main forum for all things bitcoin, happening in New York.

More Articles

Is It Better to Buy Bitcoin or Bitcoin Cash?

Bitcoin (BTC) and Bitcoin Cash (BCH) are similar digital currencies because the latter is a hard fork of the former. Some investors usually face...

Top Cryptocurrencies Flash Green as St. Patrick’s Day Celebration...

Tomorrow, March 17 is St. Patrick's day, but the top 20 cryptocurrencies on Coinmarketcap asides from Cardano and NEM are already in...

Craig Wright In An Official Statement To CFTC Says...

Through a recently filed official statement to the Commodity Futures Trading Commission , the controversial Australian Crypto developer claims to be Satoshi Nakamoto. The...

Central Bank Of Mongolia Approves First Cryptocurrency In The...

The Central Bank of Mongolia has issued the first certificate for issuing digital currency in the country. The step was taken in order of...

Bitcoin Is The Best Investment For Traders, Investment Manager...

Barth Smith, head of digital assets at Susquehanna International Group, an important investment firm based in the USA, has declared today that bitcoin is currently...

Saudi Arabia and UAE to Launch Official Cross-Border Cryptocurrency

The government of Saudi Arabia in collaboration with the United Arab Emirates has confirmed the imminent launch of its new and official cross-border digital...

Telefonica Partners with Wibson to Trial World’s First Authenticated...

One of the largest telecommunication companies in the world, Telefonica is partnering with a blockchain-based company to leverage blockchain technology in the acquisition and...

Mining Pool Receives $139,000 as Reward for Returning Accidentally...

Finally, why $300,000 was paid as transaction fee for sending just $14 worth of Ethereum has been revealed. The transaction which occurred on February...

Top 5 Ethereum-Based Games

ESports might just be the Promised Land, flowing not only with milk and honey but with crypto tokens this time. Though the industry might...

Blockchain Dating App, Hicky, Introduces ICO on Valentine’s Day

For the past few years, the world of online dating has taken the world by storm. The blockchain world is no exception to this....

Tether New Banking Relationship With Deltec Bahamas Announced

A Tether new banking relationship has been announced today by the same company on their web page, with a new banking institution. The bank...
video

Are ICOs the End of the Venture Capital Model?

Venture Capitalists have since the last decade or so been eager to finance all firms and entrepreneurs who have it in them to disrupt...

Latest Articles

HMRC demands info on traders from crypto exchanges in...

Sygnum Becomes World’s First Licenced and Regulated Digital Asset...

Swiss-based Sygnum, a digital asset investment and solutions provider, has become one of the world's first licensed and regulated digital asset banks after receiving...

The Easiest Way to Pass Your Microsoft MCSA MD-100:...

If you try to think of things that don't use Information Technology in one way or another, it would be a very tough task....

Are Worries Over AI’s Effect on the Financial Jobs...

A recent study by Fountech has revealed that two-thirds of adults living in the UK are concerned that the Artificial Intelligence industry will leave...

Will Cryptocurrency Gambling Kill Land-Based Casinos?

It’s hard to deny that the internet has radically changed the gambling landscape. Sure, the common perception of gambling may still involve the glitz...

Why Some Financial Bubbles Are Necessary Economic Disasters

The history of the worldwide economy is punctuated by financial bubbles. They happen more often than we think.  Fortunly’s infographic below provides a comprehensive...

Microsoft 70-411 Exam: Everything You Need to Know

We can’t deny the fact that the world is moving towards the future faster than ever before. Not a day goes by that we...

Why US-based people can’t bet with bitcoins at online...

Online gambling using bitcoin has been happening since the time when cryptocurrency came into being. In the initial days, gamblers used to opt for...

Couple Pays For Breakfast Using Bitcoin, Community Finds This...

A Reddit user by the username u/portageco recently made a post in bitcoin's official subreddit. In his post, u/portageco boasts about how he paid...

Australian Woman Leads Adoption, Tours 10 Countries Spending Cryptocurrencies

Who says you can't go around the world spending cryptocurrencies? As many believe, cryptocurrencies are only good for speculations. But with a little research,...

Did A Physical Bitcoin Just Sell For $99k On...

As at the time of reporting, the listing on eBay had closed. This could be because the seller got a buyer or he decided...

Litecoin Now Approved In 30,000+ Stores

As cryptocurrencies gain ground, more and more technology-based firms find ways to incorporate the nascent technology into everyday life. Moon, prior to this time,...