Chinese Miner Predicts Bitcoin Price Increase up to $740,000

Chinese Miner Predicts Bitcoin Price Increase up to $740,000

According to reports published by the encryption news outlet 8BTC on February 11, the founder of the Chinese mining pool Poolin crypto named Zhu Fa predicted that Bitcoin price could increase up to 5 million yuan ($738,000) in the future.

He said that the Bitcoin market is now more like the bear market (declining market). In this regard, he said that the market’s next trend would lean toward the bull market and prices will increase between 10 to 20 percent.

A bear market is a term used to describe the general trend of the capital market. If the stock price has a falling trend and recession is going on in the economy, then the bear market is the term that could describe the market trend. In the bear market supply is increased and demand is decreased heavily. Also, there is a lot of negative atmosphere in this market, and this leaves investors hopeless to buy new stock, in other words, bad news can lead to a bear market.

A mining pool is comprised of a community of miners that have gathered their resources for cryptocurrency mining. As network difficulty increases, more computation power will be needed for mining cryptocurrencies. Increasing computation power is expensive for a miner due to high energy expenses and special processing devices, so miners put their computation power together in a place called mining pool in order to reduce processing costs.

These pools are divided into two one-fold and manifold categories. The mining of one-fold mining pools only focus on mining one cryptocurrency, while manifold mining pools enable you to transfer between different cryptocurrencies based on the received profit. The top Bitcoin mining pools are Antpool, Slush, BTC.top, BTC.com, Bixin, BTCC, F2pool, ViaBTC, Bwpool, and Bitclub.

Cryptocurrency mining pools have advantages and disadvantages as well. Some of the advantages of mining pools that could be important in deciding to enter them are more stable income, the potential reduction in mining expenses, and the potential increase in profitability.

Among the disadvantages of mining, pools are suffering from cyber-attacks, sharing the block reward, and the potential unsuitable structure of the pool’s reward.

He also said that the sharp increase in Bitcoin price, like what happened in 2017 when Bitcoin price reached $20,000, will not happen all the time and it is possible that its next bull trend will be its last.

Experts in different aspects of cryptography have made different predictions from increasing to sharply falling.

According to the event that took place in Blockchain early 2018, the famous investor Tim Draper predicted that it is possible for the Bitcoin price to reach $250,000 by 2022.

Recently, Barry Silbert, the founder, and CEO of the cryptocurrency and investment group Grayscale announced that the value of most digital tokens would reach zero.

He further added: “almost all Initial Coin Offerings (ICO) were to gather money and there was no application for these ICOs.”

According to BTC.com, Zhu’s mining pool Poolin owns almost 10.45 percent of the global network share.

The declining market of today has hit miners hard. Some mining companies in China are selling their mining hardware based on their weight in kilograms.

Recently, cryptocurrency miner Argo Blockchain focused more on its business in order to reduce its expenses.

Argo ceased its mining operations in April as Maas operation. This could reduce their expenses by 35 percent.

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