According to the latest data on the difficulty of bitcoin mining, the price of Bitcoin may exceed $30,000 in 2021.
The famous encryption analyst PlanB shared statistics on the difficulty of bitcoin mining on Twitter. He analyzed the relationship between the percentage of bitcoin price growth from the low difficulty of mining and the number of blocks.
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Difficulty in mining is the difficulty of encrypting miners to calculate the correct hash value. It can measure the degree of competition in bitcoin miners, because the more intense the competition, the more difficult it is to mine.
PlanB said that bitcoin has experienced several difficulty cycles in history, and the price of bitcoin in each cycle will increase by an order of magnitude relative to the previous difficulty.
As you can see in the chart, the price of Bitcoin was as high as $1,300 at the end of 2013, which was 50,000% higher than the previous difficulty. At the end of 2017, the price of Bitcoin was $20,000, which was 9,000% higher than the previous difficulty.
According to this model, Bitcoin is currently entering a new mining difficulty cycle. If it can replicate the law of price increases in the first few difficulty cycles, it will rise by 1000% in 2021, that is, to $31,000. Because the bitcoin mining difficulty was lower in December 2018, the transaction price was $3,100.
According to the data, the price of Bitcoin has been oscillating around 10,000 USD in the past month. Although there are Bakkt in the encryption industry, Bitcoin futures will be launched, Sino-US trade war will intensify, the world may face economic recession, and the UK may have no agreement to leave the EU. Good news, but investors are still waiting to see.
Image source: Twitter, Pixabay
By Xiu MU