Cathie Woods, the CEO of a huge hedgefund has been stating that bitcoin will reach 1.5 million usd per token repeatedly, like a broken record. Most people have heard of this, but don't actually know why - it's because she estimates that the US economy will enter hyperinflation. This is obviously horrible news - for everyone. (other than those with all their money in bitcoin...)
What on earth would cause the U.S to reach such a period of hyperinflation, to the point where 30,000 USD turns into 1.5 million USD? It honestly sounds ludicrous but you have to realize that the U.S has been doing questionable things lately. It doesn't seem too far fetched when you look at the explanation.
Bitcoin's current marketcap stands at around 600 billion dollars. This 1.5m valuation relies on bitcoin being valued at a 60 TRILLION DOLLAR valuation. Think about that. 50% of the world's economy...in bitcoin?
This, ofcourse, assumes that the valuation of many countries will have to skyrocket, through hyperinflation ofcourse. Why would this hyperinflation occur though? What'll be the fire in the keg to be exact? Who knows. - It was never really mentioned.
Cathie woods manages a hedgefund that controls 17 billion dollars.
She has quite alot of losses and quite alot of big wins. It shows skill in predicting the market...but is she going to be predicting bitcoin successfully or will it be one of her many portfolio flops?
Recently, she'd stated that rising interest rates would damage stocks' valuations', possibly leading to bitcoin shooting up inversely to the stock market. She predicts this might launch the bitcoin price to over 500,000 dollars a bitcoin. Kinda insane and still pretty farfetched..Bitcoin can't even pass 30,000 right now and she's here predicting 500,000.
Cathie woods also has a few other outlandish claims, such as how she predicts the autonomous driving taxi market to be at a valuation of 10 trillion by 2030, even though it's at 365 billion today.
That's all for today,
Cheers and don't forget to check out my new quora space about crypto.
