In its latest research report, Standard Chartered Bank has presented an optimistic forecast for Bitcoin, suggesting that the leading cryptocurrency could touch the $50,000 milestone by the end of 2021, and climb to an impressive $120,000 by 2024’s close.

Mining Economics Fueling Bitcoin’s Potential Ascend

Driving this prediction is a key factor: the growing profitability of Bitcoin miners. As Geoff Kendrick, the head of FX and digital assets research at Standard Chartered, explained in the report, miners play a vital role in determining the net supply of the newly minted cryptocurrency, on top of their responsibility of maintaining the Bitcoin ledger.

“Increased miner profitability per BTC (bitcoin) mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher,” Kendrick stated.

According to Standard Chartered’s report, the primary driving force behind its predicted Bitcoin price surge involves Bitcoin miners. These miners create approximately 900 new Bitcoins globally every day. The costs they incur, predominantly power expenses for high-performance computers, are currently being offset by selling 100% of these freshly minted coins, as per the bank’s estimation.

However, should Bitcoin’s value climb to $50,000, Standard Chartered believes miners would only need to sell between 20% and 30% of their new coins to cover their costs. This reductio

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Author: Vince Dioquino

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