Bitcoin Energy Value metric says ‘fair’ BTC price is as much as $167K
Bitcoin miners hold the key to a hyper bullish BTC price prognosis that calls for BTC/USD to rise almost 50%. Bitcoin’s Energy Value metric, created by Capriole in 2019, argued that Bitcoin’s correct price, or fair value, is a function of energy input, supply growth rate and a constant representing the fiat dollar value of energy.
While this means that BTC/USD should be zero if miners were to stop participating in the network entirely, current record hashrates show that Bitcoin is anything but worthless. Data from onchain analytics platform Glassnode put the current hashrate, the combined processing power dedicated to the network by miners at 1.031 zettahashes per second (ZH/s).
This gives BTC price precious little time to match its Energy Value rating, which would fall if miners were to reduce the amount of energy they employ. Consistent energy input represents a balance between supply and demand. Rising market prices incentivize increased energy input via hash power growth and technology improvements which result in greater energy efficiencies.
