Jesse Powell, CEO of Kraken, one of the longest running and best known exchanges in the world, said that Bitcoin will soon hit $ 100,000. In a recent interview with Bloomberg, Powell has specified that Bitcoin will be an effective hedging instrument against inflation, and that investors will end up migrating to this safe haven, thanks also to its limited and predictable offer.
Powell then said that he is witnessing a massive arrival of new BTC traders on the market and that as far as the price of Bitcoin is concerned, he believes that the cryptocurrency is currently in a strong discount, and that within two years it will reach - in fact - 100,000 dollars .
He was also asked about Bitcoin's volatility and potential manipulation of the cryptocurrency market, Powell replied that it is no worse than what we are witnessing in traditional markets, and that when it comes to manipulation, we should also look to the Fed that buys "junk" bonds from failed US companies - he said.
“They are printing millions of dollars to increase the value of the shares listed on the stock exchange. A dollar price can no longer be given. Inflation will go out of control very soon. Personally, I would buy Bitcoin as a hedge against inflation, "he added in a tweet.
A few days ago the CEO of Kraken had returned to the same topic stating that the cryptocurrency is expected from a bright future. Powell stressed how BTC could outshine gold in the coming years, mainly because the 21 million unit limit on offer really begins to play a role in the dynamics of this nascent market.
For Powell Bitcoin is already a valuable investment, and that its characteristics will allow it to surpass gold as a store of value. Considering that the market capitalization of gold is currently estimated at around 9-10 trillion dollars, the fact that BTC can exceed the gold means that every cryptocurrency could be traded in the range of 450.000 - 500.000 dollars - a rise of over 4,500% compared to current prices.
His expectations that Bitcoin will eventually eclipse gold have been echoed by other leading names in the industry. According to "CryptoSlate", Raoul Pal (a former Goldman Sachs executive and hedge fund manager) wrote in a recent newsletter that BTC's achievement of $ 500,000 is feasible.
Morgan Creek Digital's Mark Yusko also spoke positively, stating that Bitcoin could actually reach a price of 400,000 - $ 500,000.
The quantitative analyst and investor known on Twitter under the pseudonym of "PlanB" in March 2019 shared that, according to his research, Bitcoin's market capitalization may be somewhat predicted by its scarcity level.
PlanB has therefore created an econometric model by stating that after each halving (the last one occurred a few weeks ago), the fair value of Bitcoin should rise almost logarithmically. The recent halving is expected to bring the BTC to around $ 100,000, while the next one, scheduled for 2024, will push the cryptocurrency towards seven digits.
I personally believe certain predictions too optimistic, however the $ 10,000 was already a utopia and the value was even exceeded. We'll see.
And what do you think of it? Thanks for reading so far and see you soon, that's all from Italy!
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