Bitcoin bulls are back, even though the cryptocurrency is down 50% from its year-to-date peak of $14,000. Speaking with AIBCSummit in a recent interview, Bobby Lee, the chief executive of crypto wallet startup Ballet and the brother of Litecoin’s Charlie Lee, said that he thinks that the price of BTC will hit $500,000-$1 million in the coming two bubbles — implying a timeline of 2025 to around 2028.
He backed this prediction by citing scarcity. In an interview with Forbes, he stated:
“Let’s get real, there are only 21 million bitcoins. Seven million of which have been lost forever, and then, if Satoshi [bitcoin’s anonymous creator] is dead, add a few more million.”
What he’s arguing is that with increased demand for Bitcoin, the ultra scarce nature of the cryptocurrency will lead to a surge in price as there won’t be enough coins being fed into the market at low price points to satisfy demand.
Impossible Without Financial Collapse: Opinion
Frankly, though, this writer believes it is impossible for Bitcoin to reach such high valuations in the eight digits unless there is an utter collapse of the traditional financial system.
A $1 million Bitcoin would equate around to a market capitalization of somewhere near $20 trillion — approximately the same value as the Gross Domestic Product of the entire U.S., for some perspective. $20 trillion would also make Bitcoin the most prominent form of base money on Earth, surpassing gold’s relatively mere $8 trillion market capitalization.
What’s interesting, though, is that a paradigm shift in finance and power is seemingly on the horizon. As reported by Ethereum World News previously, billionaire hedge fund manager Ray Dalio believes that “the world has gone mad and the system is broken,” implying to him that “the world is approaching a big paradigm shift.”
He backed this prediction by looking to an array of issues: extremely low, and even negative interest rates for the creditworthy, large government deficits that he believes are almost certain to “increase substantially,” the impending collapse of “sound finance” in “reserve currency countries and their currencies,” massive liabilities in pensions, and a growing wealth gap.
Dalio is an overt fan of gold, claiming that he sees a future in the asset in a world of shifting paradigms. But, many have said that Bitcoin is an alternative to the precious metal.