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'Billions and Billions' Being Invested in Next-Generation ASIC Chips: Analyst

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Fri, 19/06/2020 - 14:43
'Billions and Billions' Being Invested in Next-Generation ASIC Chips: Analyst
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While naysayers routinely dismiss Bitcoin as another ‘tulip bubble’ that is based on nothing but thin air, PlanB, the Dutch analyst behind the stock-to-flow model, has proven that this insult certainly doesn’t apply to the crypto king in a recent tweet.

He claims that ‘billions and billions’ of dollars are currently flowing into new ASIC miners, which displays the true value of the network.   

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image by @100trillionUSD

According to PlanB, this figure can be verified by calculating the required amount of miners and the coin’s energy usage.  

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An energy-backed cryptocurrency 

Back in January, Capriole Investments founder Charles Edwards wrote an article about how Bitcoin was predicted by American industrialist Henry Ford a century ago.
 
Ford envisioned an energy-backed currency that could not be controlled by international banking groups.

While it was impossible for Ford to translate his plan into reality, Bitcoin is now viewed as its long-overdue realization.    

As reported by U.Today, former Wall Street trader Tone Vays believes this is one of the reasons he’s a staunch Bitcoin maximalist.       

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Bitcoin’s intrinsic value 

According to JPMorgan, Bitcoin’s intrinsic value equals its cost of production, which went up dramatically after the quadrennial reward cut.   

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image by bloomberg.com

 The graph above shows that Bitcoin rarely trades below its average price of mining one coin. 

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