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Unlocking the Future of Bitcoin: A Paradigm Shift Predicted by Standard Chartered

Jack Evans
Oct 11, 2023 at 08:54 pm

Recent reports from Standard Chartered, a financial titan known for its insightful predictions, have set the cryptocurrency community abuzz. The topic of discussion? The future valuation of Bitcoin. In a world where crypto markets ride waves of unpredictability, this forecast offers a beacon of promise.

The bank's earlier projections slated Bitcoin to reach a commendable $100,000 by the close of 2024. Yet, the unveiling of their top FX analyst, Geoff Kendrick's insights suggests an even more promising scenario - a potential 20% surge beyond that mark.

Despite Bitcoin's tumultuous journey, it has witnessed an impressive 80% increase in value since the beginning of the year. But let's not forget that its current value is a mere fraction of the staggering $69,000 it achieved in November 2021.

The year 2022 was a tempestuous one for the crypto sector, with trillions of dollars vanishing into thin air. Central banks, raising interest rates, and the downfall of major crypto entities such as the FTX exchange bore the brunt of the blame. However, 2023 appears to be breathing new life into the crypto market, with several traditional banks faltering, leading to a partial resurgence.

So, what's the secret behind this newfound optimism? Kendrick's astute analysis casts the spotlight on the dynamics of Bitcoin mining. Miners form the bedrock of the Bitcoin network, validating transactions and extending the blockchain. In return for their toil, they're awarded freshly minted bitcoins.

Traditionally, miners sell 100% of these freshly mined coins to cover operational costs, particularly the electricity that fuels their robust computers. However, the equation could change drastically. If Bitcoin were to surge to $50,000, miners would likely hold onto a larger portion of their earnings, selling only 20-30% of the newly minted coins.

This shift could potentially lead to a substantial reduction in the annual supply of Bitcoin, with approximately 250,000 bitcoins held back, igniting a surge in demand.

Furthermore, Bitcoin's intrinsic supply mechanism is poised to curtail the daily mining limit in the coming spring, further constricting the supply. A reduced supply coupled with increasing demand could pave the way for a significant upswing in Bitcoin's value.

While the Standard Chartered report paints a promising picture for Bitcoin's future, it's crucial to remember that the crypto market thrives on unpredictability. The history of speculative valuations looms large, as demonstrated by a Citi analyst's ambitious projection for Bitcoin in 2022, which ended the year at a fraction of that figure. In the crypto realm, caution remains a sage counsel. Nonetheless, Standard Chartered's insights hint at a paradigm shift, and the world watches with bated breath as Bitcoin's journey unfolds.

Read more: Revolutionizing Remittances: Binance Pay and STICPAY Forge a Crypto-Powered Alliance

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