It’s no secret that Bitcoin has declined sharply since its high back in mid-December. However, analyst Max Keiser is still bullish on Bitcoin due to its ever-increasing hashrate.
Bitcoin on a Downslide
To say that 2018 hasn’t lived up to expectations in regards to the price of Bitcoin is an understatement. The coin has lost roughly 70 percent of its value from late last year when it almost reached $20,000. The cryptocurrency is now trading at $6,176, according to CoinMarketCap.
The misery may not be over yet as trend analysis shows that the rest of 2018 will not be a good one for the number one virtual currency. That being said, not all is doom and gloom.
Former Wall Street trader Max Keiser recently tweeted that things for BTC are likely looking up. In his tweet, he points out that “price follows hashrate” and that “new hardware is consistently being added to the #bitcoin network.”
The hashrate is the total computing power that a blockchain uses to send and confirm transactions. In the case of the Bitcoin blockchain, the hashrate has risen higher than it has ever been.
Price follows hashrate. https://t.co/p73ovdZarC
— Max Keiser (@maxkeiser) June 19, 2018
While the hashrate is booming, the price of BTC is still dropping. Some point to the long transaction times and fees that have hampered the coin’s use for currency purposes, but there is hope on that horizon.
SegWit and the Lightning Network are addressing such issues, and their use is growing. Even Litecoin creator Charlie Lee paid praise to both systems. He said:
Bitcoin is a great store of value. I’m fine spending ~$1 fee per transaction, but I can’t stand waiting 40+ minutes for a confirmation!…Lightning Network solves both these problems for Bitcoin and SegWit solves a few more!
Overall, it’s certain that Max Keiser is right. While the price of Bitcoin may drop even further, the adoption of SegWit and Lightning Network will address the coin’s main problems. As regulations are clarified and the cryptocurrency space stabilizes a bit, a huge amount of institutional money will come flooding in. People like George Soros and others know when something is worth investing in and will be sticking around, and they’re starting to put their money into Bitcoin.
Do you agree with the views of Max Keiser? Let us know in the comments below.
Images courtesy of Shutterstock and Twitter/@maxkeiser.