Bitcoin price prediction in 2024 from a top economist

In a recent analysis, economist Timothy Peterson pointed out that given Bitcoin's observed increase in difficulty, it could see the price jump to $100,000 by the end of 2021.

In a recent analysis, economist Timothy Peterson pointed out that given Bitcoin's observed increase in difficulty, it could see the price jump to $100,000 by the end of 2021.

For those who may not know, the difficulty of Bitcoin is a standard used to indicate how difficult it is for miners to find new BTC blocks on its blockchain network. This ratio is usually recalculated after every 2,016 blocks are mined – approximately every two weeks – so that a block is mined approximately every 10 minutes.

The more people who mine and the more advanced hardware they use, the better the results will be, but this presupposes difficulties in exiting an entity from the chain. These readjustments are open and happen automatically, so no organization can control them.

According to him, in addition to thinking about scarcity, one should also think about the relationship between the level of difficulty and the price when it comes to Bitcoin.

This is due to the fact that when the mining becomes more complicated, the energy costs of the mined token also increase. Under these conditions, miners will demand higher prices in order to continue mining profitably. On the other hand, the drop in prices may discourage some players from participating in the process, ultimately leading to a decrease in overall hashing power and correspondingly lower difficulty levels.

So given those factors as well as what's going on right now, Peterson thinks , that this year could end with a price range between $60,000 and $90,000 per token, rather than a 100% Bitcoin depletion.

He stated that strong network security, manifested through very high levels of difficulty, supports higher costs, while the associated energy costs act as price floors. Furthermore, adoption rates could be even greater than expected, coupled with positive market sentiment, which is why it is possible that they could reach $100,000 per token.