Posts about Bitcoin
Just about 6 years ago from today there was a historic event for Bitcoin and all of Crypto history. On the 1st August 2017, BTC splitted into BTC and BCH, the first Bitcoin fork. Later on BCH also splitted into BCH and BSV in 2018. A hard fork means that a blockchain network splits up into a new and an old version, reasons for that have usually been conflicts in the developer team and it was actually the same with the BTC-BCH hardfork.
Here there were conflicts of rather having larger mining block for BTC and thus having cheaper fees and faster transactions (BCH) or just keep it at the smaller blocks (BTC). So, was it really worth it?
While BCH still stays as the 17th Crypto ranked by market cap (and BSV is at 57th), it is still down a whopping 95% against BTC since its fork and generally down 94% from its ATH of over $1.1k in 2017 to now a price of $228. So looking at the numbers, it certainly was a failure and could never even narrowly come close to giving the actual BTC competition.
Just a small disclaimer at the end, BCH even if after the numbers has lost, this post should be no disrespect for their quite big community it has gathered over the years and the fact that it is under active development and can actually be used for low-fees and fast transactions. (unlike the Craig Wright aka Faketoshi scam of BSV)
For publicly-listed Bitcoin miners, in particular, a price north of $100,000 may be more of a necessity than a forecast if their business models are to remain profitable. Bitcoin mining stocks have been on a tear this year, outperforming BTC by a wide margin in recent months. While BTC has seen reduced volatility and a period of consolidation, Bitcoin mining companies’ stocks have risen by nearly 100% in a matter of months.
Recent performance of popular BTC mining stocks. Source: Seeking AlphaA big increase in Bitcoin’s price will therefore be required for miners to remain profitable at today’s hash rate levels.
How high does the BTC price need to go for miners to maintain their current valuations?
A recent report by Seeking Alpha explores BTC mining by examining one popular miner in particular: Riot Platforms. It notes that despite Riot being expected to triple its mining capacity in 2024, the company and Bitcoin miners, in general, could face serious headwinds from the halving. A 50% decrease in BTC block rewards cuts miners’ main source of revenue in half. Miners like Riot can also issue new equity shares to fund their operations. This dilutes existing shares, meaning that even if the company’s underlying fundamentals are sustained, the share price may not keep up.
Do you think BTC can break the 100k price by end of 2024?
Today we know how after literally every second -5% dump for BTC, it gets called dead by literally all of mainstream media. So much that we already have over 400 dead calls of Bitcoin and many of them are even during absolut peaks of the bull market. Seems like people just never learn…
But it may be even “funnier“ to look back on one of the first times Bitcoin was called dead. That was all the way back in August 2011, by the news site Gizmodo, which still exists until today. They called Bitcoin death literally just a few years after it was even born and probably gave it even more attentions with that.
Also just to remember the price back then was just $8 per BTC, so clearly you could not have been more wrong at a certain time to call Bitcoin “dead“. Obviously even today the media will call Bitcoin dead at every situation they got and they will probably continue to do so all the way up to $1M and even more, just showing how irrelevant their words are.
A small history session for us all here, talking about one of the biggest and most historic bubbles there have ever been, the Dutch Tulip Bulb Market bubble. This is one of the most famous and very likely the biggest bubble there has ever been. Imagine that you could literally buy a whole mansion in the most supreme spot of Amsterdam back in 1636, just by selling one simple tulip bulb (mother bulbs were used to grow tulips quickly). That sounds crazy and it is crazy.
This makes it even funnier that the most historic bubble ever was being compared to Bitcoin back in the 2017 bull market, the Bitcoin mania and hype was so crazy back then that BTC saw a rise from $1k to nearly $20k in the same year. Obviously hedge-fund mangers that missed out would envy that quite a lot…
Here we have one example of a person being so desperate to compare BTC at about $15k to a historic bubble where one tulip could buy you a whole Amsterdam mansion.
And that is not the first time, I am sure that already since 2010 some are calling BTC a bubble and they will keep doing for literally forever, just because they missed out. There are people like us who accept that we missed out and start to accumulate now and then there are those people who are just angry for their whole life that they missed out.