Bitcoin can shoot 600% and reach $ 64,000 by 2019: study shows

Bitcoin's mining activity growth may push the price of the world's largest Cryptocurrency to $ 64,000 next year - up 600% from today's $ 9,100 - according to Fundstrat, a research company founded by Tom Lee. "We believe the current hash growth supports a BTC price of about $ 36,000 by the end of 2019, with a range of $ 20,000 and $ 64,000," said Sam Doctor, head of data research from the company.

Bitcoin is created through a process of great energy expenditure called mining, in which users receive Cryptocurrencies as a reward for using their computers to solve complicated mathematical equations to validate network processes. The processing power to address these issues is known as "hash power," which Fundstrat predicts will grow 350% by 2019.

On the other hand, the mining economy of Bitcoin will likely create a level of support for Cryptocurrency, says Doctor. According to him, Bitcoin miners are more likely to keep their bitcoins as the price drops to be able to balance operating costs while they tend to sell as the price soars, leading to larger profits.

"The top liquid sellers, we believe, are bitcoin miners, and the rest are cross-investor transactions," Doctor said during a teleconference Thursday.

"The launch of the next generation of hardware should trigger a new round of capex as well as the growth of hash power, which can accelerate if the price of BTC is appreciated," explains Doctor.

Fundstrat co-founder Tom Lee is the only major Wall Street strategist to cover the Bitcoin. He issued his first formal report on the criptocurrency in July last year, when bitcoin was trading near $ 2,540. At the time, Lee predicted that Bitcoin could replace gold and reach anything between $ 20,000 and $ 55,000 by 2022.

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