https://bitcoincraze.xyz/fundstrat-unveils-new-metric-to-determine-future-bitcoin-price-growth/-
In the world of cryptocurrency, there is always a large focus on the price. Determining that “value” is not as straightforward as it seems. Thomas Lee of Fundstrat proposes a radical yet intriguing new idea. By determining the breakeven point for Bitcoin, a new metric can be established.
It is evident Fundstrat has been paying a lot of attention to cryptocurrency. Their focus on this industry has increased significantly since early 2018. It was a matter of time until the firm came up with its own “creation” related to this industry. Rather than creating their own coin, the firm is more interested in technical metrics. Known as price/ Miner’s Breakeven Cost and offers some unique insights.
The new Metric by Fundstrat
Most people are aware of how Bitcoin mining is intensive and expensive. Miners need a specific bitcoin price to break even, let alone make a profit. That exact value has been speculated upon far and wide. The end result is confusing, as the numbers are rather conflicting. For Fundstrat, the P/BE metric can provide an important support level.
CRYPTO: Our quant/data scientist @fundstratQuant publishing #bitcoin mining white paper. Crypto mining economics lead/explain $BTC price—suggests $39,000 per bitcoin by YE19. key takeaways below… pic.twitter.com/f5ZQ4py3jS
— Thomas Lee (@fundstrat) May 10, 2018
While this is all fine and dandy, it doesn’t necessarily impact the Bitcoin price. Or that is what people would think. Tom Lee explains the firm expects the Bitcoin price will hit $39,000 by late 2019. This is not a wet-finger-prediction, as it uses the new metric to come to this conclusion.
Whether or not this metric by Fundstrat will hold true, is a different matter altogether. The Bitcoin price is subject to massive speculation and manipulation. The bullish Fundstrat outlook is promising, but the reality often looks very different. One should never blatantly based expectations upon someone else’s calculations.
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