Cryptocurrency mining is a tricky business to get involved in for different reasons. You have to deal with the reality that you will eventually need to invest in powerful computers, not to mention pay the high electrical bills monthly. There are also countries that have imposed strict measures to regulate mining activities. However, if you will ask John McAfee, he believes that mining Bitcoin is a good bet.
John McAfee worked at MGT Capital. He mentioned that “I was one of the world’s largest miners when I was with MGT…We did it because it was profitable. No matter what price of Bitcoin, you cannot lose money by mining Bitcoin. Let’s say the price drops to $2,000, everybody gets out and the difficulty rate drops to zero and you’re cranking out millions of coins per day”.
He also discussed the four variables that should be considered by miners. He mentioned that temperature, hashrate, mining difficulty, and electricity consumption are things that every miner should look into if they are going to mine Bitcoin. He said that “As a large miner I am able to see the actual growth and use of Bitcoin. Two weeks ago I did a Bitcoin transaction and it took me 18 hours. If you have an item, entity, product whatever that is in such demand and you tell me the price is going to go down, not it’ not”.
Bitcoin Close to a Million Dollars by 2020?
He also believes that from a mathematical point of view, Bitcoin is expected to be close to a million dollars by 2020. He made use of the number of Bitcoin and the mining difficulty as his basis for this conclusion. In fact, once the next block happens, the amount of Bitcoin will be reduced from 12.5 bitcoins to just 6.25.
He said that “Why don’t we look at the last Bitcoin? We have thousands of people to mine one coin. what is that coin going to be worth? Maybe billions. Mathematics doesn’t lie. Say what you want, mathematics doesn’t lie. If it’s not a million dollars in 2020, it has to be. The end of 2020, December. That’s my prediction, I’m going to stand by it…It is the number 1 coin for processing transactions. Run the numbers”.
No Such Thing as a Wealthy Short-term Investor
He also believes that you should be holding on to your bitcoin. He gave his sound advice to those who have weak hands. He mentioned that you should “stay true, stay the course, and hold”. He also added that “There is no such thing as a wealthy short-term investor”.
The crypto market has recently lost a significant value. In fact, it has lost almost 80% of its all-time high. However, Bitcoin has remained stable despite this shake-up. In a month, Ethereum has lost around 45% of its value.
Many are starting to look at Bitcoin as the safe haven for many crypto investors. This means that they tend to switch to Bitcoin and not necessarily cash out. Can John McAfee’s prediction really come true at this point?