Bitcoin could reach $17,317 in 2020 according to the Twitter user @100trillionUSD. In a recent tweet uploaded by the analyst, he says that based on difficulty Bitcoin (BTC) could reach this price in 2020. At the moment, Bitcoin is 80% down from its all-time high in December 2017.
Bitcoin Could Reach $17,000
The analyst made a poll in which he asked his followers what would Bitcoin difficulty be 2 years from now (2020). 59% of the respondents answered that Bitcoin’s difficulty will be 10X (50E12). 27% answered that it would be 100X (500E12). 7% of the respondents believe that there would be a ‘death spiral.’ In this dead spiral, Bitcoin would lose a massive amount of hashing power.
After the results, he wrote a new thread about Bitcoin’s future price. He said that taking into account the results of the poll and the possible power law relationship between bitcoin price and difficulty, ‘an unorthodox prediction’ for Bitcoin’s price in 2020 would be $17,317.
1/4 Based on the poll results on bitcoin difficulty (see poll below) and the possible power law relationship between bitcoin price and difficulty (see formula below), an unorthodox prediction of the 2020 bitcoin price would be: $17,317 pic.twitter.com/5MjDW9Tgay
— PlanB (@100trillionUSD) December 23, 2018
On the matter, he wrote:
“Bitcoin price and difficulty seem to have a power law relationship: Price=0.005*Difficulty^0.46 like Kepler’s third law: Orbital period=Distance to the sun^1.5. Using the bitcoin difficulty from the poll (165E12) in the power law formula (Price=0.005*Difficulty^0.46) results in a 2020 bitcoin price of $17,317.”
Bitcoin’s hash power has been growing during the current year. However, in the last few months, the network’s hash rate dropped almost 50%. Since August, some cryptocurrency miners are not able to sustain their operations. The falling price of virtual currencies has damaged mining activities.
In November, Bitcoin and other digital assets dropped very hard. Some of them more than 50% such as Ethereum (ETH). The whole cryptocurrency market capitalization saw a reduction of over 50% between November 15 and December 15.
Following the analysis made by the expert, a 100X increase in Bitcoin’s difficulty would result in a price of $28.873. A few weeks ago, Bitcoin registered the largest downward adjustment of its difficulty in seven years. Difficulty allows miners that were not able to keep operating their mining rigs to enter the market once again if Bitcoin prices do not grow to cover costs.
At the time of writing this article, Bitcoin is being traded close to $4,000 and it has a market capitalization of $69.65 billion.
