Bitcoin price to go to $500,000? It is not a typo. It stems from John McAfee who on Wednesday challenged JPMorgan CEO Jamie Dimon’s skepticism of bitcoin.
Recall we covered in detail how Jamie Dimon on Tuesday called bitcoin a “fraud” that will eventually blow up. McAfee, whose company MGT Capital Investments mines the cryptocurrency disagrees. He stated:
“You called bitcoin a fraud. I’m a bitcoin miner. We create bitcoins. It costs over $1,000 per coin to create a bitcoin. What does it cost to create a U.S. dollar? Which one is the fraud? Because it costs whatever the paper costs, but it costs me and other miners over $1,000 per coin. It’s called proof of work.”
This was news to Quad7Capital. We were not aware of the costs. Miners invest “massive” amounts of supercomputing power and electricity in creating bitcoins. Bitcoin is highly volatile. After eclipsing $5,000, the cryptocurrency was last trading evening at more than $3,875.
McAfee added: “Sure it will rise and fall as all new technologies are. But at the same time, it is certainly not a fraud.”
McAfee made a massive bet on Twitter earlier this summer that bitcoin would reach $500,000 within three years. While that seems far fetched, the trajectory is higher.