🔥🔥🔥 #bitcoin Economist Reveals Year-End Forecast for $BTC Price
Economist Timothy Peterson recently analyzed Bitcoin's difficulty growth rate and suggested that BTC's price could potentially reach $100,000 by the end of the year.
Bitcoin's difficulty rating measures the challenge of mining a new block on the #Blockchain . This rating adjusts every two weeks to maintain a consistent block addition rate of approximately every 10 minutes. The difficulty increases with more miners and computing power and decreases when miners leave the network. Bitcoin's decentralized system and automatic, transparent difficulty adjustments prevent any entity from manipulating the difficulty rating.
Peterson asserts that there is a strong correlation between Bitcoin's difficulty and its price. As mining difficulty increases, the energy cost per mined Bitcoin also rises, prompting miners to balance their electricity and hardware expenses against potential rewards. When Bitcoin prices are high, these costs become manageable, making mining profitable despite increased difficulty. Conversely, a drop in Bitcoin's price can force some miners to exit the network, leading to a decrease in computational power and difficulty.
Peterson highlights a feedback loop between Bitcoin's price and difficulty. Higher prices attract more miners, increasing difficulty, which in turn can support higher prices. Increased difficulty and the associated costs drive miners to become more efficient, further supporting higher prices as the network strengthens. This creates a market equilibrium where energy costs are balanced by Bitcoin's price.
Given these dynamics and current trends, Peterson predicts a reasonable year-end price range for Bitcoin between $60,000 & $90,000. A high difficulty level indicates robust network security, which supports higher prices, while energy costs provide a price floor. However, factors like increased adoption and positive market sentiment could potentially push the price even higher, towards $100,000.
*This is not investment advice.
Source - en.bitcoinsistemi.com