Jehan Chu, Kenetic Capital, stated, “With the turmoil in markets and the streets, suddenly digital gold doesn’t seem like such a bad idea.”
Bitcoin is looking at the $12K price hurdle, and the dominance rate of the coin is at an all-time high of $12,030. The short-term prospects of Bitcoin have improved. Top investors and analysts are particularly Bullish when it comes to the long-term price action of Bitcoin.
The price rise is sustainable, considering the Bitcoin Dominance Rate. A falling channel breakout is predicted permitting a rally of $13,880. If the BTC closes today below $11,120, the bull case will weaken. The dominance rate of Bitcoin validates the 9.5% price rise of Bitcoin.
Trade-war tensions have escalated due to the risk assets across Asia and Europe. The price of Ether and Litecoin as well went high.
The price of the Bitcoin is en route to all-time highs of the token. At this point, there seems to be a renewed interest in Bitcoin mining.
The average computing power over the past two weeks remained above the 70EH/s threshold. There is a new mining difficulty record set at 10 trillion. This implies that over the past two weeks, nearly 100,000 ASIC miners should have switched on the mining process. Considering that all of these ASIC miners used top-of-the-line products, each of these should have sold for at least $2,000 each amounting to $200 million in revenue for mining equipment manufacturers.
With an improved interest in mining, top manufacturers are all set to develop the most dominant cryptocurrency mining equipment. There is a decent expectation that the demand for the cryptocurrency mining chips would be back during the third and the fourth quarter this year.
About 85% of the Bitcoin in the world has been mined. “That’s a hair over 85 percent of the cryptocurrency’s supply limit of 21 million coins.” Despite, there is no need to worry. There is 3,000,000 Bitcoin left to be mined until the 21 millionth coin can be mined.
It is a good thing for Bitcoin to have limited supply. Scarcity gives the anti-inflationary property to the token. The value of the Bitcoin comes from its scarcity. This prevents it from being devalued due to an unlimited supply.
Satoshi Nakamoto, cryptography mailing list, 2008 published, “Coins have to get initially distributed somehow, and a constant rate seems like the best formula.” However, the mining rewards will become insignificant before the 21 million coin limit is reached.