The world’s most sought-after cryptocurrency, Bitcoin (BTC) is estimated to reach $150,000 by JPMorgan.
Not very long ago, the world witnessed a huge drop in the value of the coin. Bitcoin (BTC) and Ethereum (ETH) seemed to be looming towards bedrock at the beginning of the year. BTC had plunged to much lesser than $43,000 on 6 January 2022. This drop had weakened investor eagerness in other delicate assets. Truth be told, the U.S. Federal Reserve’s meeting on the same day had shown a desirable rise in March this year.
Bitcoin is currently the world’s largest and most desired coin in the world. The American Investment banking company has raised its BTC goal to $150,000 in the long run. This indicates an increase in its value compared to last year’s value of $146,000.
However, for BTC to attain the above-mentioned goal, the dominant virtual currency will have to match the private sector’s $2.7 trillion investment in gold.
Considering that BTC volatility is around four times that of gold, the strategists determined the fair-value level to be around $38,000. Concurrently, the bank approximated that the fair value climbs to $50,000 in a situation where the volatility gap narrows to three times. The strategists wrote,
“The biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.”
Bitcoin mining through renewable energy
Marathon Digital Holdings Chairman and CEO, Fred Thiel said that California missed out on $700 million in revenue last year by not mining bitcoin using its abundant renewable energy, in an interview with Yahoo Finance Live while discussing BTC mining regulation.
Thiel explained that the group currently focused on mining is a group of people concerned about the energy use of “proof of work” as a technology. The Bitcoin blockchain is secured via ‘proof of work’, making it the safest blockchain available. He added that BTC miners in North America primarily use renewable energy.
It has come to light that there is a lot of available renewable energy capacity in California that the grid had told the operators to shut down to the tune of 1.4 terawatt-hours just last year. In perspective, Thiel said,
“Had that energy been used by Bitcoin miners when consumers don’t need it because they were told to shut it off, it would have produced almost $700 million of revenue that could have gone to the energy producers.”
As a result, renewable energy producers have a strong incentive to collaborate with Bitcoin miners. At the time of writing Bitcoin (BTC) was priced at $45,066.92 and was oh high tide of 3.19% over the last 24 hours.