- Bitcoin manages to stay up, with a daily high so far of USD 8,759
- Digitalik shows that Bitcoin is rigidly following price estimations of the Stock-to-Flow model
- London-based Argo Mining records 1,000% rise in Bitcoin mining revenue in 2019
Bitcoin took a beating on late Sunday in the Americas as traders contrived to take even more profit from the mini panic that ensued after stop losses triggered. But Asia woke up on Monday determined to keep Bitcoin above ground, with an impressive rise to USD 8,759 (CoinDesk) which is still the daily high.
New Bitcoin Hashrate ATH: 126.13 EH/s
126 Quintillion hashes per second
(When we hit our price ATH in December 2017, hashrate was 13 EH/s) pic.twitter.com/1m25h5h0VA— hodlonaut🌮⚡🔑 (@hodlonaut) January 18, 2020
Bitcoin’s ability to hold its own after such a slip has given confidence to the crypto market in general, with altcoins like ETH, LTC and XMR all holding on to relatively good prices in the third week of 2020. Pragmatists will be warning traders not to get too eager, especially as market action is right now indicative of exhaustion from the buyers, at least for the very short term.
But technical analysts are still keeping the faith, with some pointing out now that Bitcoin is in fact perfectly aligned with a historical price chart, which shows how it has grown from only pennies worth to today’s valuation. Digitalik, which charts Bitcoin’s growth according to a Stock-to-Flow model, actually shows that Bitcoin is quite strictly in line with estimations that use two factors to determine value: amount of bitcoin in circulation (stock) and the amount of new bitcoin entering circulation (flow).
And since new bitcoin is generated at a relatively low number in proportion to existing supply, it shows a Stock-to-Flow value that can only go up. And with halving due to come in four months, this flow is going to go down by about 50%, indicating that price valuations can only go up in the medium and long term.
Crypto analyst PlanB, who is often credited as the propagator of this Stock-to-Flow model, had first said that Bitcoin would trade in a narrow range close to its 2019 average just before this Bitcoin halving event due in May 2020.
He says, based on his model, price should then dramatically go up, so much so that by 2022, it would hit six figures at USD 100,000.
It’s noteworthy that @100trillionUSD came out with his stock to flow model in March 2019, and since then, bitcoin has pretty much tracked his price band. So far, the model has been predictive. Things will get very interesting if the model is accurate by year’s end. https://t.co/y6jabglua7
— Monetary Wonk (@MonetaryWonk) January 13, 2020
Bitcoin miners should be happy, and as we reported yesterday, more and more are entering the Bitcoin network to get a share of mining revenue, with price still ensuring profitability.
And now, Argo Blockchain, a publicly-listed mining company, has released revenue reports that show it made 1,000% more in 2019 than it did in 2018. According to numbers in a ProactiveInvestors report, the company is now planning on even more expansions in 2020, the news triggering a sharp bounce on its share price.
Argo not only runs mining rigs but also offers institutional investors what it calls a Mining-as-a-Service (MaaS) that caters to those “looking to hold specific coins but do not want to procure via exchanges”. The London-based firm is listed on the London Stock Exchange (LSE), but has its operations in Canada’s Quebec region that offers cheap hydroelectric power.
The company’s estimated GBP 8.5 million (USD 11 million) revenues in 2019 signals more than 11 times that of the previous year, which was set at GBP 760,000 (USD 987,000). This success was met in spite of markets cooling off towards the end of 2019. All in all, Argo mined 432 Bitcoin during Q4 2019, compared to 426 the previous quarter, but crypto prices and increased mining difficulty, compounded by unfavorable foreign exchange rates, meant the final quarter of 2019 cut into what would have been even more astounding margins.
Nevertheless, Argo reports a hugely positive mining margin of 52% in the final three months, down from 73% from July to September 2019. Mining margins, is given as the value of the currencies compared to the cost of production.
It isn’t veryclear on what the expansion of operations might entail, other than the existing goal of owning and operating 17,000 mining rigs by March 2020. Since the new year, rigs under management has already doubled.
Full steam ahead from the miners, it appears.
BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Image Courtesy: Pixabay
The post Trending Bitcoin News and Market Sentiment January 20th, 2020: Bitcoin Priced Exactly as Stock-to-Flow Model Predicts, Argo Mining Posts 10-Fold 2019 Revenues appeared first on BitcoinNews.com.
from BitcoinNews.com RSS Feed
via TOday BItcoin New
0 Comments:
Post a Comment