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If the price of Bitcoin drops by $1000 can mining still contin

Date:2024-07-29 18:21:04 Channel:Trade Read:


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Willy Woo, partner at Adaptive Capital and blockchain analyst, said that according to "conventional" forecasts, the price of Bitcoin will reach $135,000 in the future. However, if there is a major trend reversal and the price of Bitcoin falls to the $1,000 range, it will be a test of "whether the strongest Bitcoin miners can continue to operate."

The ultimate test for the strongest Bitcoin miners if Bitcoin is only $1,000

If the price of Bitcoin falls to a low of $1,000, it will be a test of the last strongest Bitcoin miner that can continue to operate.

He also added that by then, the network will be very fragile and extremely vulnerable to attacks. If there are only a few miners left and there is not enough hash rate, then the cost of attacking the Bitcoin network will be very low. In the current extremely bleak market situation, Keiser
and expert analyst Willy Woo both believe that Bitcoin will eventually "win the victory."

Woo
explained that he has long been accustomed to using the flow of funds on the blockchain to understand the true direction of the market, and through on-chain analysis to understand whether miners are selling coins, the flow of capital and other indicators, so that he can understand the way prices are moving.

In fact, Woo’s bullish tweets suggest that he thinks the correction is over, meaning a bull run is coming.

So what does Willy Woo think we’ll see in the next six, nine, and twelve months? He reminded Keiser that he can’t know exactly where the price is going, but he can be sure of the direction. He said:

We can do other models that try to choose the highest price, for example, you can choose 35 times the cumulative average of the price, which is actually choosing all the highest prices in Bitcoin’s 10-year history as a data reference.

When he was pressed to make a price prediction, he mentioned that, keeping in mind that Bitcoin’s super bull run could last about four years, “the most optimistic guess is that it will exceed $100,000.” I think one of the most common-sense predictions is about $135,000.

Bitcoin’s digital scarcity is “more perfect than gold”

Regarding the upcoming Bitcoin mining reward halving, which will cut the mining reward in half. Woo said, “The important thing is that Bitcoin’s inflation rate has dropped to a lower level than gold.” He continued,

Digital scarcity is even more perfect…. Gold is not actually scarce, we have found it in the asteroid belt of the universe… Bitcoin has absolute mathematical game theory scarcity…
Someone will eventually figure out how to mine gold on a large scale, which will cause the price of gold to collapse.

Keiser
asked if we will see Bitcoin transition from a store of value to a medium of exchange in the future as people start to use cryptocurrencies more widely. “If I could buy a house with one Bitcoin, I would certainly choose to do that,” he said.

Woo
believes that this argument will eventually come true. But he reiterated that the process is still a long way to go. Bitcoin’s market value must first become more robust, which is only one-sixth of a trillion dollars today, while fiat currencies have accumulated $90 trillion and real estate has accumulated $220 trillion.

Keiser added that once Bitcoin achieves a market value comparable to gold’s market value of $7-8 trillion, we will be in the price range of about $400,000.

Woo
responded: “I think we have to wait 7-10 years for this.”

No speculative asset can make a 100% accurate price prediction, and Woo reiterated that people should not regard his analysis as investment advice. Because Bitcoin may rise to $130,000 one day, but it may also fall to $1,000. Everyone must decide for themselves the future value of Bitcoin and do their own research first.

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