30s Summary

Bitcoin miners’ stocks saw a 24.4% increase on October 28 as Bitcoin surged past $70,000. Factors like a favorable global economic environment and miners’ diversification into AI are credited for the growth. Companies like Bitdeer Technologies, IREN, Gryphon Digital Mining, and Hut 8 experienced significant gains. Meanwhile, several nations including Argentina, UAE, and Ethiopia have begun mining Bitcoin with state-owned resources, further boosting Bitcoin’s reputation. Some experts predict that Bitcoin could reach $2.9 million per coin by 2050.

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Bitcoin miners’ stock prices rocketed on October 28, peaking at a 24.4% increase. This came as Bitcoin itself surged past $70,000. Analysts are attributing this growth to several factors including a better global economic environment and the fact that these miners are branching out into areas like AI.

According to Mitchell Askew from Bitcoin mining company Blockware, the world’s current economic state is pushing more people to invest their money. Things like low interest rates and deficit spending are helping to boost global cash flow. At the same time, investors are worried about high inflation rates for the long term. Since the September interest rate cut, treasury bonds have been performing badly. This is leading investors to sink their money into Bitcoin instead.

The companies that are doing particularly well are those that have invested in AI and high-performance computing. Bitdeer Technologies, a Singapore-based company, saw the highest growth on October 28, up by 24.4%. Several other companies, including IREN, Gryphon Digital Mining, and Hut 8 also saw significant increases.

Bitcoin miners that couldn’t turn a profit after the 2024 Bitcoin halving event (a pre-scheduled reduction in rewards for mining activity) have given up, leading to less competitive pressure and better prospects for the surviving companies. As Askew put it, “We are so back.”

Moreover, several countries including Argentina, the United Arab Emirates, and Ethiopia have started mining Bitcoin using state-owned resources. This adds to Bitcoin’s credibility and signals a shift towards using digital currency for international trade, further driving the currency’s growth.

On a final note, some experts are predicting that Bitcoin could hit $2.9 million per coin by 2050. If this happens, it will need to increase at a 16.6% compounded annual growth rate for the next 25 years.

Source: Cointelegraph