News outlet 8BTC reported that Zhu Fa, CEO of the mining pool Poolin, predicted a price for bitcoin of $740,000. Despite the current bearish sentiment, he argued that the future for the biggest cryptocurrency is bright.
Bitcoin mining and predictions
The mining companies struggle when the bitcoin price is low. The mining pool F2Pool earlier stated that miners sold their equipment by the kilo because of the cryptocurrency going below $4,000. The price for mining rigs went from a value of $2,885 to less than $144 and over 800,000 miners had to quit the business.
Even though the price went down and many miners lay off their rigs, Zhu Fa states that that the future is bright for bitcoin. He is the CEO of the mining pool Pooling who holds a network share of 10,14 per cent. The current bear market has hit the mining pools hard, but Zhu sees the price of bitcoin surge to new heights during the next bull-run. He says:
“Bitcoin price will be in the range of 500,000 yuan – 5,000,000 yuan ($74K-$740K) in the next round of bull run.”
However, when it comes to mining companies, they struggle in the bear market, and an example is Nvidia who’s share price have dropped sharply. A recent report revealed that the demand for Nvidia’s graphics processing units (GPUs) among crypto miners has dried up.
Bitcoin bulls: positive predictions
A few days ago, the billionaire Zhao Dong stated that the bear market is the best time to buy bitcoin. He advises believers to buy as many bitcoins as they can now when prices are low and when no one cares. Most of the bulls are positive when it comes to bitcoin, but some are not as enthusiastic about altcoins. Berry Silbert said a few days ago that most altcoins would go to zero while bitcoin will thrive. Most altcoins took advantage of the ICO hype in 2017 but did not have any real projects behind their ICO. Some projects were even outright scams. However, he predicts that bitcoin might replace gold which is a sentiment shared by both the Winklevoss Twins and Mike Novogratz.
Novogratz also argued that institutional money would drive the next bull run but do not think it will be as steep as the bull-run during 2017. It does not seem as Zhu agrees as he predicts prices 10 – 20 times higher than previous bull runs. Zhu also noted that massive prices spikes like the one that resulted in the $20,000 per BTC high in 2017 will not always exist. He also said that the next bull run could be the last of that calibre.
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Dennis Sahlström has been trading and investing since 2012 and has for the last two years been consistently profitable. He has been in the crypto- and blockchain space since the middle of 2017 and realized its potential for our world, not least how it is transforming the society we live in. He has now created an education platform, together with the wealth coach Marcus the Maria. They teach regular people how to invest and trade in the cryptocurrency market with proven strategies. If you want to learn more and feel like its time to get into this new asset class, download our free book and register to the next live training to get your future in cryptocurrencies started.