On the CoinsBank Blockchain Cruise, AMBCrypto approached John McAfee to obtain his perspective on the price of Bitcoin [BTC] in the long term. McAfee spoke about the economics of the coin, and about the state of mining currently.
He began by saying that he had no idea as to what would happen in the short term. However, he offered an anecdote from his time working at MGT Capital. This was shortly after they turned to cryptocurrency mining as their full-time occupation, leading to John McAfee to gain insights into mining. He stated:
“I was one of the world’s largest miners when i was with MGT…we did it because it was profitable. No matter what the price of Bitcoin, you cannot lose money by mining Bitcoin. Let’s say the price drops to $2000, everybody gets out and the difficulty rate drops to zero and you’re cranking out millions of coins per day.”
He also spoke about balancing the four variables of temperature, hashrate, mining difficulty and consumption of electricity, further elaborating on the perspectives he gained being a miner of Bitcoin. He stated:
“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, no it’s not.”
The mining difficulty of the Bitcoin blockchain has slowly been going up, with the next block halving on the horizon. This means that the supply of Bitcoin would be cut in half, as the block reward will be reduced from 12.5 to 6.25 BTC. On this, McAfee stated:
“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.”
The current state of the market has many analysts stumped, as the price seems to hike and fall in seemingly the most random and unplanned way. However, McAfee believes that this is manipulation of the market, quoting the drop in Bitcoin from $7400 to $6400 in 3 days. On the subject, he elaborated:
“You can only manipulate something if you have the power to do so. Now if that thing becomes more valuable your power decreases, and the inherent value is many times the current price of Bitcoin. It just comes through always in every market situation. The people that are manipulating it, they are going to lose billions of dollars and then it’s going to be over.”
The state of the Bitcoin market is in an “infant state”, stated McAfee, likening it to a blade of grass that is susceptible to the wind or a footstep. However, soon it will become a “fire raging in a forest”, he said, stating:
“It’s a fire raging in the forest, and you’re outside the forest and you’re in your house and you’re leaning back but it’s going to break out of the forest and it’s going to be in the world and we’ll have to deal with it. And keep in mind that as cryptocurrency increase, fiat currencies will inflate.”
When asked about whether he had anything to say to the readers of AMBCrypto, McAfee stated:
“Stay true, stay the course, and hold. There is no such thing as a wealthy short term investor.”
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US 2020 Presidential Candidate promises to provide better regulatory clarity on cryptocurrency market
Andrew Yang, the United States 2020 Democratic Presidential candidate, released a new policy for the regulation of the cryptocurrency space on April 20. The new policy statement titled ‘Crypto/ Digital Asset Regulation And Consumer Protection’, emphasized on the need for regulating the digital asset place, and also listed the actions Yang would do for the cryptocurrency market as the President.
Yang said on Twitter,
“New Policy #22 – Digital Asset/Cryptocurrency Regulation. Investment in cryptocurrencies and digital assets has far outpaced our regulatory frameworks. Investors need to know what their treatment will be in order to properly innovate in the U.S.”
On the official site, Yang stated that the cryptocurrencies “have quickly grown to represent a large amount of value and economic activity”. He further spoke about the lack of regulation of the cryptocurrency space, adding that the “patchwork of varying regulations” introduced by states has made it “difficult for the US cryptocurrency market” to compete with any other market, importantly China and Europe.
The Presidential Candidate further listed three key problems that needed to be solved, growth of cryptocurrency market being faster than that of the government’s response, differing regulations in different states, and uncertainty of the framework that would be unveiled.
Fang, a Twitter user, said,
“A candidate that is actually in touch with technology, blockchain and crypto. I missed the Bitcoin train but got in early on Ethereum mining: A significant % of my net worth is in crypto. So far I’ve done nothing but HODL. Our government has no idea what to do with digital asset”
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