Bitcoin Expected To Hit $ 220,000 By Max Keizer This Year
Bitcoin maximalist Max Keiser has predicted that the largest cryptocurrency is going to reach a pie-in-the-sky target of $220,000 this year.
Keiser’s theory is based on his older theory that the price of the highest cryptocurrency tends to follow the hashrate of the network.
As reported by U.Today, Bitcoin’s hashrate reached a new record high of 203.5 exahashes on Jan. 2, starting the new year with a bang.
It happened after the network’s total computing power fell to 58.4 exahashs per second in late June due to the massive exodus of miners from China.
In an interview with Daily Express, Keiser described the much-feared “China ban” as a temporary hiccup.
He is now saying that Bitcoin’s fundamentals are “screaming higher”.
The largest cryptocurrency is currently changing hands at $46,579 on the Bitstamp exchange, struggling to regain bullish momentum.
Is there a correlation?
Record-breaking hash numbers mean it has become even more difficult and costly to cripple the network by performing a 51% attack.
The theory that the Bitcoin price tends to follow the network’s hashrate is based on the assumption that the cryptocurrency tends to appreciate due to miners investing more money and resources into the network. The higher level of security is attractive for long-term investors since become increasingly confident that Bitcoin is not going away.
While a chart that compares the price of Bitcoin and the hashrate shows that there is a clear correlation, with the latter apparently being a leading indicator.
