'Analysts' Say Bitcoin Will Likely Quadruple In Value Next Year

If you think that's a lot, check out their non-conservative estimate...

'Analysts' Say Bitcoin Will Likely Quadruple In Value Next Year

Currently at $9,081, Bitcoin is predicted to reach $36,000 in 2019, according to a Wall St strategy firm’s analysis of crypto-currency mining efficiency gains.

And that’s one of their conservative estimates—although $36,000 is the Fundstrat report’s “most likely” target, Sam Doctor (one of the authors) wrote that Bitcoin could end up anywhere between $20,000 and $64,000, depending on how the financial, electricity and technology landscapes develop over the next year and a half.

Even the lower end of that range represents a 113 percent increase from the current bitcoin price, while the more optimistic estimate represents a 583 percent increase.

The reason for the report’s optimistic prediction is the steadily more cost-effective ratio between the bitcoin price and miners’ breakeven cost (P/BE). As reported by CCN, this has proven to be a “reliable long-term support level” for the flagship cryptocurrency, and future mining infrastructure development will “underpin bitcoin price appreciation into year-end 2019.”

“We expect the mining economy to grow over the next several years, and project a BTC price of ~$36,000 by year end 2019 based on the historical average 1.8x P/BE multiple” (Fundstrat analyst, Sam Doctor).

Although it is important to note that Fundstrat has always been quick to talk up Bitcoin, it is true that crypto-mining firms have been scaling up their operations following last year’s bull market (even after the crash).

As reported by CCN, Bitmain, the world’s dominant mining hardware manufacturer, “Is said to have made as much as $4 billion in operating profit in 2017, and Canaan — its largest competitor — is preparing to hold an initial public offering (IPO) that it believes will provide it with a $1 billion valuation.”

This, combined with the news that Wall Street’s biggest financial institutions (Goldman Sachs and The New York Stock Exchange) are, as reported by The New York Times, “Working on an online trading platform that would allow large investors to buy and hold Bitcoin,” should be enough for the digital currency’s advocates to continue seeing their bank accounts through gold-tinted glasses.

And in the meantime? Just tell your landlord: “it’s half full not half empty, I swear!”

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