Bitcoin Price Will Surge to $31,000 Due to Increased Mining Difficulty

Bitcoin Price Will Surge to $31,000 Due to Increased Mining Difficulty

 

Although the crypto market couldn’t satisfy bitcoin enthusiasts and investors for a long time, there might be some good news for people constantly eyeing the price of bitcoin. According to PlanB, due to mining difficulties, bitcoin should cross the $30,000 mark. Using a model to study the difficulty cycle of bitcoin, a 1,000% gain to $31,000 bitcoin price was predicted by PlanB. The analysis concluded that the price of bitcoin will surge by 2021 which is only a few months away.

In the past, bitcoin mining had faced several difficulty cycles. During the analysis by PlanB, the trend of bitcoin price after experiencing a difficulty cycle was focused and explored. It was revealed that bitcoin price grew by orders of magnitude relative to the price of bitcoin in difficulty lows.

In 2013, compared to the last difficulty low, bitcoin rose to $1,300 worth with exceptional 50,000% gains. Later in 2017, the price improved by 9,000% before ending up at $20,000. As bitcoin hit a difficulty low in December 2018 when its price was about $3,100, after increasing at least 1,000%, the price of bitcoin is suggested to skyrocket around $31,000 by next year.

The difficulty of the bitcoin network is directly related to the hash power of the network. The computing power imparted to the network by miners is regarded as hash power. With the inclusion of miners participating, the hash power of the network increases and so does the difficulty.

Recently, the hash rate of the network climbed to an all-time high […]