After this week was pretty bearish for Bitcoin, it finally turned its way upwards. Some of the merits go to the crypto derivatives platform ErisX that started with its physically settled Bitcoin futures contracts, launching only the second such product suite in the U.S. However, only after Wednesday it went above the $7,000 mark. At the time of writing, it is trading at $7,179 that came as a welcome change that brought a dash of optimism among traders and analysts.
With sentiment going up and down this week, Bitcoin’s progress has provided a welcome cause for broader optimism among traders and analysts.
Analysts at CoinShares Research said that among their findings is an “estimate that the current market-average, all-in marginal cost of creation … is approximately $6,300.”
$6,300 the Cost of Mining One Bitcoin
Last year was however one of the worst for Bitcoin which fell below $4,000. If we presume that $6,300 is a cost of mining one Bitcoin, then it’s clear that back then, some miners had to turn off their machines while others went on to reassure the market they were not about to shut down.
Glen Goodman, author of The Crypto Trader says that thing that matters is not the average miners but the lowest cost miners, “the ones who can do it most cheaply because they have access to cheap electricity and newer, more efficient mining equipment. Those miners can currently even scrape a profit at $3,900.”
He added:
“If the Bitcoin price fell below $3,900, then I expect we’d see fireworks. Most miners would probably have to shut down operations, and many would be forced to sell their stocks of bitcoin, which would push the price down further. But in that situation, the Bitcoin system automatically adjusts to make mining easier until miners feel it’s profitable to start working again.”
In an interview with crypto media network BlockTV, entrepreneur Tim Draper once again repeated his previous prediction that the Bitcoin price would go beyond $250,000 by 2022.
And not just that. Draper also said that the sky-high records for Bitcoin will come as soon as next year – just half a year after Bitcoin’s block rewardhalving event in May.
He stated:
“If you run a technical analysis, it looks like it’ll be something like six months after the halving that we will cross $250,000 per Bitcoin.”
Draper also said that for now, Bitcoin is exactly “where it should be.” However, he said some more interesting things. For example, commenting on some reports of different Bitcoin wallets that have appeared, Draper said that this may be because a lot of people are giving Bitcoin out for the coming holidays as Christmas presents.
Women Will Take the Main Role in Saving Bitcoin
When asked why he believes that by 2022-2023 Bitcoin will reach the long-awaited mass adoption and why it hasn’t happened already, he said that women will take the main role:
“I think the flood gates are about to open because it turns out that women do about 75-80 percent of the shopping and only 1 out of 15 Bitcoin wallets is held by a woman. So once women realize they are wasting 2.5-4 percent every time they swipe their credit card they will definitely be starting to look for a better solution.”
Be it as it may, altcoin markets have reacted positively to Bitcoin’s gains and ended Thursday mostly in green. For example, BCH went up by 1.66% to $188.56 and EOS increased by 2.40% to $2.49.
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