The well-known Bitcoin analyst, PlanB has published mining difficulty data showing that the price of bitcoin could hit more than $30k by 2021.
The difficulty of mining crypto has been a big indicator throughout history for network resources and refers to the complex nature of the maths gone into validating bitcoin transactions and mining new bitcoins.
As reported by Cryptoglobe, the analysis by PlanB suggests that:
“BTC undergoes regular difficulty cycles that correspond with changes in valuation. The price increase for bitcoin following a low in the difficulty cycle has decreased over time, rising 50,000% in late 2013 compared to 9,000% in December 2017.”
When you take into consideration the low in mining difficulty for the current movement - which happened in December last year, PlanB predicts that the price of bitcoin will top out once more in just two years time.
One user asked the analyst, whether it would happen in 2021 to which he responded with, “Yup, about 130-140k blocks after Dec 2018 (last difficulty bottom)”.
However, it seems the predicted value range for the flagship currency is to be a bit more variable. With this, the analyst says that the bitcoin price could reach anywhere from $30,000 to $300k at the next price top.
“Yeah, I would say between 30k-300k (wide range guesstimate)”
It will be interesting to see how this plays out and whether bitcoin will actually hit highs of $30k by 2021, but only time will tell!
In terms of price for the time being though, bitcoin is currently in the green after a wild few weeks with a price of $10,331 following a 2.50 percent increase over the past 24 hours and a market cap of $185,259,402,091 t the time of writing.
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