Fundstrat Global, a favorite research firm in the cryptosphere with Wall Street-street cred, is once again providing eye-popping bitcoin (BTC) predictions. This time analysis depends largely on what’s known as the mining economy. Hash power and hardware advancement all combine to show a possible $36,000 BTC price by the end of next year, they claim.
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Fundstrat Continues Moon Price Predictions
Fundstrat’s head of data research, Sam Doctor, explained, “The release of the next generation of rig hardware should trigger a new round of capex as well as hash power growth, which could accelerate if BTC price appreciates.”
Capex is short for capital expenditure, and refers here to upgrades in technology such as mining rigs. Hash power growth can be thought of as cryptocurrencies such as bitcoin using proof of work, relying on a unit of measure basically recording power consumed by the network to keep it humming along, in this case, roughly every ten minutes a block is found or generated.
Internal Fundstrat research document
“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,” Mr. Doctor continued. “The primary net sellers, in our view, are bitcoin miners, and the rest are transactions between investors.”
If a multiple of four from its current price seems ambitious, the actual range from Fundstrat pushes the high to nearly twice even that number. Mr. Doctor uses mining economics to establish a floor support level due to its supposed relative growth going forward. Through next year, researchers believe mining hash power will indeed boom by 350 percent.
A Rosy Immediate Future
Most of the price moon
