Bitcoin Will Die at $43 as Mining Costs Far Exceed Profitability
Bitcoin doomsday prophets are at it again. This time, they are saying that the top-ranked cryptocurrency will die out at $43. In other news, BTC prices have taken another slump, hovering below the $6,200 mark.
The Three Likely Paths for Bitcoin
Bloomberg’s Noah Smith yesterday (July 11, 2018) highlighted three main paths that BTC will likely follow in future. The first scenario is one in which BTC fulfills the expectations of Jack Dorsey and Steve Wozniak in becoming the single global currency. BTC replaces fiat and becomes popular in mainstream use for all sorts of payments – coffee, rent, mortgage, etc.
Smith’s second scenario is one in which Bitcoin becomes like gold. Here, BTC doesn’t replace fiat except in failed economies like Venezuela. However, its market capitalization becomes significant, maybe even in the trillions of dollars region. BTC becomes less of a currency and more of a commodity held by people to hedge against any significant stock market crash.
The third path identified by Smith sees Bitcoin finally becoming worthless as it experiences a cataclysmic decline. The cryptocurrency is then abandoned as it no longer holds any significant value.
Bitcoin Will Die at $43
According to Joseph Carson, the chief security scientist at Thycotic, the third scenario is the most likely outcome for Bitcoin. Commenting on his position, Carson said:
The most likely scenario is that bitcoin will die; my current valuation of bitcoin is approximately US $43 as opposed to the hyped and manipulated valuation.
Carson envisages a point where BTC mining would cease to be profitable thus removing the incentive for miners. There is a lot a debate on what the actual cost of Bitcoin mining is, but there is as yet no consensus on the matter. Speaking on his prognosis, Carson also sad:
Unless Bitcoin is able to become more efficient at mining, and more stable overall, it is likely to die. These higher mining costs and the fact that more retailers are failing to accept bitcoin as payment – as they are unable to convert it as it is too expensive – will mean the end of it.
Bitcoin Relevance not Tied to Top-Ranked Status
In a related development, CEO of LaneAxis, Rick Burnett believes that Bitcoin’s place in the grand scheme of things concerning crypto has nothing to do with it being the top-ranked coin. According to Burnett:
I don’t know if it’s going to be on top but it is always going to be a leader because it’s the founder. It is what people identify with.
Despite continually being criticised as a nothing but a fad, Burnett believes that Bitcoin will continue to remain relevant. The top-ranked cryptocurrency is currently in the midst of another slump, losing more than 3 percent in the last 24 hours.
Which of the three scenarios do you think is more likely for BTC? Will BTC still hold sway even if it is no longer the top-ranked crypto in the market? Let us know your thoughts in the comment section below.