John McAfee: Bitcoin [BTC] is “The Number One Coin For Processing Payments”

John McAfee remains true to his vision of Bitcoin (BTC) as the number 1 cryptocurrency in the ecosystem, contradicting opinions that deny its nature as a peer-to-peer electronic cash system. So he stated in conversations with the AMBCrypto team during the CoinsBank Blockchain Cruise.

John McAfee: Bitcoin [BTC] is “The Number One Coin For Processing Payments”Mr. McAfee is one of the most influential personalities in the cryptocurrency community, his extensive knowledge of the ecosystem as well as his outspoken personality make his opinions to be highly respected despite being controversial in some cases. The possibility of supporting each of his arguments with facts has made him a reference for many crypto adopters.

“Run The Numbers”

John McAfee commented that from a mathematical point of view, the value of Bitcoin should be close to a million dollars by 2020. The relationship between the number of bitcoins mined and the mining difficulty allows this conclusion to be reached, especially when the next block halving is approaching. This means that in a short time the amount of bitcoins that are put into circulation for each new block mined will be reduced by half, going from 12.5 BTC per block to 6.25:

“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.”

This graph shows what happens when there is a cut in supply. If the demand for Bitcoins is the same, but the supply is reduced (the supply goes from O1 to O2), then the standard equilibrium price “P1” moves up to “P2” (Bitcoin gets more expensive)

John McAfee: HODL “There Is No Such Thing As a Wealthy Short-Term Investor.”

For Mr. McAfee, the crypto-mining industry is highly lucrative. According to his reasoning, the directly proportional relationship between Bitcoin value and its mining difficulty ensures that a sustained profitability level is always met for miners.

“ 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.”

John McAfee is also now confirmed as a speaker for the cryptocurrencies conference of the Malta Blockchain Summit 2018. an event that will be held at the “Blockchain Island” on November 1-2

Finally, he concluded with advice for those known as “weak hands.”

“Stay true, stay the course, and hold. There is no such thing as a wealthy short-term investor.”