The recent jump in Bitcoin above $ 9,000 now does not discuss only the lazy. Some analysts and supporters of the cryptocurrency are already saying about the revival of the market. In a series of tweets, the famous economist Alex Krueger spoke about the influx to the ecosystem of institucionales, and also about why the stock market was beneficial to the shifted focus from retail investors.
The quote was the following.
JP Morgan analyst recognizes what has been obvious for a couple of months: for ballroom are basically institutionally, not retail investors, as it was during the hype of 2017.
As previously stated the analyst Nicolas Panigirtzoglou, in question, over the past few months, the volume of trading BTC rose to 445 billion as of April from 220 billion during the first quarter of 2019. In may, the monthly trading volume on cryptomeria has already reached 725 billion.
Kruger recalled how Panigirtzoglou was wrong about the intrinsic value of Bitcoin is correlated with the cost of mining.
The same analyst a month ago, wrote about how the intrinsic value of Bitcoin is determined by the cost of its production (which is false) and that at the time the asset was trading above intrinsic value (i.e. overpriced). How to pay these bankers for the fact that they were always late or wrong?
According to Kruger, just the production cost of Bitcoin is determined by market price, not Vice versa. When the price of BTC increases, the cryptocurrency becomes more profitable to mine. Thus, the more miners include equipment, increasing the completion rate of units.
See also: mining Bitcoin brings record profits for the year. And in Russia?
To maintain balance, adjusts the difficulty of mining, consequently, increases the cost of production. By the way, on the eve of this figure has set a new historical record.
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