What Happened: Adam Back, CEO of Blockstream and the cryptographer behind it Bitcoin’s (CRYPTO: BTC) Proof-of-Work mining algorithm, expects the price of the leading cryptocurrency to reach $100,000 this year.
In a recent interview with Anthony Pompliano, Back said after analyzing Bitcoin options prices, the $100,000 price is still “quite possible” this year.
“The equation I liked was the competitor to physical gold, because Bitcoin is a better physical gold in many ways,” he said.
“And so, you know, you can derive a kind of valuation from how many coins there are, the current gold price. Suppose that value is divided and you end up in the hundreds of thousands… maybe half a million even on that basis alone.”
Why it matters: Back was one of the first people to own Bitcoin and one of the first two people to receive an email from Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
In 2014, he co-founded blockchain technology company Blockstream with fellow Bitcoin protocol developers.
Just yesterday, the company announced that it has successfully raised $210 million in Series B financing at a valuation of $3.2 billion.
Blockstream also acquired Israeli Bitcoin mining hardware manufacturer Spondoolies for undisclosed terms.
What else: Earlier this year, Blockstream partnered with Jack Dorsey’s payment company Square Inc (NASDAQ:SQ) to launch an open-source renewable energy mining project as part of the Bitcoin Clean Energy Initiative.
At the time, Square invested $5 million in the company with the goal of building a solar-powered Bitcoin mine.
Price promotion: At the time of writing, Bitcoin was trading at a price of $47,257, having lost 0.72% in the past 24 hours.
Square shares traded at $267, up 0.026% at the time of printing.
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