Analysts expect the bitcoin cryptocurrency to match gold as a hedge this year. Initially, it was probably bitcoin accepted in the market nowadays, however, the price of this cryptocurrency should reach the US $ 100,000 or Rp 1.4 billion per coin.
As per Goldman Sachs, bitcoin has the potential to reach a hedge this year. “Bitcoin will capture market share from gold in 2022 as digital assets dominate the stock market,” he said. According to him, currently, the market capitalization of bitcoin is still around US$ 700 billion. Meanwhile, gold is US$ 2.6 trillion.
Pandl also explained a hypothetical scenario for bitcoin to achieve the same hedge as gold or gain a 50% share of the investment market. “The price must reach more than US$ 100 thousand,” he said. However, Antoni Trenchev, the founder of blockchain-based lending platform Nexo, said bitcoin would continue to increase the price of up to $100,000. It is because institutional investors are aggressively building bitcoin treasuries.
MicroStrategy and Square are examples of companies buying bitcoin in bulk. “So, I think bitcoin will hit $100,000 per coin this year,” Trenchev said. Another reason is that the money market and the policies of the United States central bank will benefit crypto assets.
Last month, New York-based crypto specialist Kate Waltman predicted bitcoin prices would continue to be bullish this year. “Bitcoin will be US $ 100 thousand in the first quarter of 2022 or sooner,” he was quoted as saying by Time last month (12/27/2021). In addition, Jurien Timmer, global macro director at Fidelity Investments, noted that bitcoin is showing an increasing trend in Value over Time. According to him, investors expect a sustained increase in bitcoin price driven by organic market movements in the long term.
However, the price of bitcoin tends to fall in the year’s transition from 2021 to 2022. Based on Coin desk data, the price of crypto assets fell 6.97% in 24 hours to the US $ 43,168 per coin today (6/1). The bitcoin price was above US $ 50 thousand at the end of last year (27/12/2021).
So the Destination of Chinese Bitcoin Miners, Kazakhstan Internet Goes Out
Eight months on, Kazakhstan, one of the destinations for expelled cryptocurrency collectors, experienced an internet blackout. The Kazakhstan government has shut down the internet network since last week due to the political crisis. The outage brought cryptocurrency mining to a halt.
In Kazakhstan, Didar Bekbau, Miner said several bitcoin mining sites had collapsed. “There is no internet, so there is no mining,” he said, quoted from CNBC International, last weekend (7/1).
Bekbau runs a hosting service company for international miners called Xive. In addition, it sells specialised equipment needed to mine cryptos. Despite the collapse, Bekbau is optimistic that his company will resume operations in the next few weeks. “Everything will be fine,” he said. However, an analyst at digital money firm Kevin Zhang said the impact of the internet blackout in Kazakhstan had taken 15% of the world’s bitcoin miners offline. Because this country is the second-largest crypto mining place after the United States (US).
Kazakhstan has an 18.1% share of the bitcoin mining market globally.
Due to internet blackouts in Kazakhstan, bitcoin prices plunged in a week. Based on Coindesk data, the price of bitcoin had reached US $ 47 thousand per coin early last week (4/1).
The price of the cryptocurrency is now US$ 41,889 per coin. The price almost touched the US $ 40 thousand per coin. The VP of research at The Block said hours after the internet shut down in Kazakhstan, bitcoin hash rate rates fell 12%. Hashrate is determined by the fit of single geography in hosting a large data centre.
Meanwhile, an analyst at digital asset broker GlobalBlock Marcus Sotiriou said the hash rate could cause bitcoin prices to plummet. “Because it will indicate network security so that a decline can scare investors in the short term,” he said as quoted by Business Insider last weekend (7/1). Kazakhstan and the US are becoming options. The Chinese government is tightening regulations regarding crypto mining, as it requires a large electricity capacity.
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