Bitcoin Could Reach One Million by 2030 Says the Electricity Model

hydro power

Cyrus de la Rubia, the Chief Economist of the Hamburg Commercial Bank, has crunched the numbers to price bitcoin using what we are calling the electricity model. As you all know there’s a ‘hard’ process to creating bitcoin using electricity and semiconductor asics chips. These are very valuable commodities for which bitcoin competes with other sectors, like computers, machine learning, or indeed your cooking oven. Thus Rubia argues at a certain point of global energy consumption, market forces would make energy allocation to bitcoin mining less desirable than for other activities, so putting a cap. He says: “The moment these other energy-intensive goods, for example steel or aluminum, are in greater demand than additional units of the cryptocurrency, the relative attractiveness of Bitcoin decreases. Then the upper price limit is reached.” He puts this ‘moment’ at about 2% of global energy consumption, which gives bitcoin a price of $100,000 currently.…

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