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

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Fri, 06/19/2020 - 14:43
Alex Dovbnya
Do you still think Bitcoin has no intrinsic value? This analyst wants you to think again
Cover image via stock.adobe.com
Contents

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.   

image by @100trillionUSD

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

Related
Bitcoin’s Bubble Has Popped — What Can We Learn From History?

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.       

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.   

image by bloomberg.com

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

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.


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