According to the forecast of research firm Fundstrat Global Advisers LLС, the rate of bitcoin will reach $36 000 by the end of 2019. According to the news Agency Bloomberg, the forecast presented to the customers Fundstrat head of research company data Sam Dr. Sam (Doctor).
We will remind, Fundstrat popular in Cryptoprotected research company that has a good reputation among the brokers of Wall Street. The new forecast is based on the analysis of the so-called economy of mining. According to specialists, the combination of a number of factors, including the growth of the hash power and the development of machinery, suggests that the rate of bitcoin will reach $36 000 by the end of 2019.
“The release of the next generation of equipment for the rigs should give impetus to a new round of capital investment, as well as the growth hash of the facilities that can be accelerated with a growth rate of BTC,” explained Dr. Sam.
It should be noted, in this case, the term “capital investment” refers to the technology upgrades, such as Riga for mining. The assumption about the potential growth of the hash capacity — according to researchers, by the end of next year the increase will be 350% — largely based on the use of the algorithm Proof-of-work, requiring more power.
“We are confident that the current growth trajectory of the hash capacity will determine achievement of course bitcoin increased about $36 000 by the end of 2019, with a range of $20,000-$64000. The main net sellers, in our opinion, the miners of bitcoin, with the rest of the transaction between investors”, — said the Doctor.
The forecast relies heavily on the assumption Fundstrat that the miners will keep their position during the winter, and then begin to sell. The movement variables in the Economics of mining implies the emergence of innovations in equipment, changes in the cost of electricity — “with the release of new rigs, the network becomes more efficient, power to 1 Watt — above” — and the ability to maintain equipment effectiveness by reducing temperature. In addition, mining is increasingly focused on the operations of a large scale, smaller miners need to join mining pools to remain competitive.
Sam the Doctor said that used in the study methodology, which is based on calculating the break-even point of mining is the exchange rate between bitcoins and the cost of mining — has already proved its efficiency in the long term.
“We are confident that the rate of P/BE, where P is price, BE — cost miners, provides an important level of support,” appears in the document representing the results of company research.
According to Dr. in this regard, the “probable trajectory of future growth infrastructure mining should be the basis for the growth rate by the end of 2019”, while we should expect lower prices for ASIC miner Bitmain to $6,000 for Antminer S7 and a little over $2000 for the model S9.
“We expect that the Economics of mining will increase over the next years will determine the course of BTC, about $36 000 by the end of 2019, which is based on the average P/BE for the past years,” the study’s findings published in Twitter the co-founder of Fundstrat Tom Lee (Tom Lee).
It is noteworthy that the new forecast Fundstrat followed less than a week after it was published the opinion of Whether the potential sharp growth rate next week. Renowned crypto-analyst and the primary public face of the company, Whether probably really the only prominent Wall Street analysts that accepts cryptocurrency seriously and refers them to the asset class. Last summer he said that BTC becomes a store of value on par with gold and reached a rate of $55 000 by 2022, and later became known that Lee predicts the growth rate of the leading cryptocurrency of up to $25,000 by the end of this year.