Since its inception in 2009, Bitcoin has been the subject of much prediction and speculation. It is known for having a volatile price history, and has been the source of joy (and pain) for investors worldwide.
Despite many constant predictions and opinions that it would plummet and hit the $0 mark, Bitcoin has continuously risen over the past decade. Wild predictions have always been a part of Bitcoin’s life story, and that is no different today. Many top industry leaders and investors still foresee major growth in the leading digital currency, while others still believe that Bitcoin will eventually hit $0.
Notable Bitcoin Price Forecasts
Many public figures in the crypto game have weighed in with their own predictions of what the price of Bitcoin could look like in the future, with these predictions ranging from $0 to somewhere in the millions. Economist and NYU professor Nassim Taleb was once bullish on the future of Bitcoin, but has since changed his mind, stating that Bitcoin is worthless, against the opinions of many other investors.
The Winklevoss twins think of Bitcoin as a direct replacement for gold that could even outperform it due to its known supply and portability. They predict Bitcoin’s valuation will match gold in the near future, putting it at $500k per Bitcoin.
Ark Investment Management CEO Cathie Wood has a forecast of $500k as well, and thinks it could come as soon as 2026. Microstrategy co-founder Michael Saylor anticipates that Bitcoin could get as high as $14 million, which would put its total market cap at around $300 trillion.
At a current market cap of roughly $800 billion, Bitcoin is already the asset with the 9th highest market cap in the world, just behind Facebook at $975 billion. To put that into perspective, tech giants Apple and Microsoft sit in 2nd and 3rd with around $2.4 trillion and $2.2 trillion, respectively, while gold has the highest market cap at $11 trillion. If Bitcoin gets to $500k, its market cap will be close to that of gold and it would be roughly $8 trillion larger than Apple at its current valuation.
What Would $500k Bitcoin Mean for Miners?
A rise to $500k for Bitcoin would be massive, jumping to nearly twelve times the price it is currently at. Surely, there would be implications for investors worldwide, but how would a jump of this calibre affect miners?
Mining profitability has been extremely lucrative as of late, and a rise in price would only increase this. Miners with hosting at $0.03/kWh and S19 mining machines are currently enjoying production costs of roughly $3,800 per BTC. At such a high profit margin, it would be expected that more people worldwide would want to get in on the action.
A hike to $500k would cause margins to widen even further. The network difficulty rises as more and more miners get on the scene and push the total hashrate up, but even if the difficulty were to triple, those mining with an S19 at $0.03/kWh would be seeing over 95% margins at a price of $500k. Fortunately, for those who already own miners or who have a reliable source for new miners, there’s currently a mining hardware supply bottleneck.
ASIC miners are built with similar chips that are used by Apple, Intel, Nvidia, and others, and the production of these chips is limited to just a few companies. With all of these large tech companies in need of these chips, ASIC producers like Bitmain can’t get enough supply to support the heavy demand for mining equipment. As a result, there is a hardware supply shortage and innovation has slowed down overall as ASIC producers don’t have the necessary resources to build more efficient mining machines. Until this problem is resolved, difficulty will not increase directly with BTC price, while the price could still reasonably explode.
Although the hardware supply shortage may make it difficult to get your hands on good mining equipment, it offers a great opportunity for those who can. Not only will their profitability remain high, but the newest mining rigs (such as the Antminer S19) could stay highly profitable for an increased period of time. A great way to stay up to date on current profitability estimates and predictions is through mining expert resources like Wattum Insider. It’s likely that profitability will remain high, especially as price increases along with further adoption.
Secure Efficient Bitcoin Miners Today
The supply of top mining equipment is expected to remain low for the foreseeable future, and it is strongly advised to secure hardware today before the price of equipment increases further. Mining is a much more attractive option than simply buying Bitcoin on the market as it allows miners to accumulate BTC at a much lower cost. Wattum offers hardware procurement services as well as hosting in several facilities around the world, so you can get your mining operations set up and running with ease at the lowest electricity prices available.