While speaking to Bloomberg, CEO of Kraken, Jesse Powell detailed why he trusts dollar-based long-term price forecasts for Bitcoin are not correct, stressing the inflationary characteristic of fiat money.
Replying to a query on Bitcoin’s likely price at the end of the year, Powell said “I think I said Bitcoin is going to infinity and that’s kind of hard to comprehend because I’m measuring it in terms of dollars.”
Presenting different approach for valuing Bitcoin, Powell stated that its value may rise from the current level or one Bitcoin per Tesla Model 3 to “one Bitcoin per Lambo” by the end of 2021, and even up to “one Bitcoin per Bugatti” in another two years (2023). Powell further stated:
“To the crypto community, I think those kinds of assets are easier to measure Bitcoin against because you never know where the dollar is going to be. There could be 10 times as many U.S. dollars out there a year from now, so it’s really hard to measure Bitcoin against the dollar.”
Even though Bitcoin traded at a price of second-hand Honda Civic (2020 model) for almost the entire 2019 and the first-half of 2020, a single Bitcoin was more than enough to purchase a new Civic when the numero uno currency’s price breached all-time peak at the end of 2020. With regards to Ethereum, Powell stressed the significance of the budding non-fungible token sector, stating “All of the NFT activity is really driving up the use of Ethereum.”
When Lambo? Probably by the end of the year, says @jespow.
The CEO and founder of #cryptocurrency exchange Kraken speaks to @emilychangtv and @sonalibasak on how high he thinks #Bitcoin can go https://t.co/yfkGwDPMBy
More on @crypto: https://t.co/NLRE84Up5T pic.twitter.com/55ya7epGtu
— Bloomberg Crypto (@crypto) March 31, 2021
Powell also underlined uncertainty around the timeframe for completion of Eth2 update and stated that deposits to staking contract are presently reducing Ether liquidity. With respect to altcoins, Powell underlined the buzz about Polkadot, brushing away arguments that the network may turn into next Ethereum due to fee and step up problems.
Citing the low transaction charges of Polkadot, he said “There are a lot of other coins that are being launched on top of this network, and I think you’ll see a lot of things that were on Ethereum be ported over to Polkadot.”
Polkadot intends to provide higher processing speed and efficiency in comparison to other cryptocurrency networks by handling trades utilizing a “parachain” framework where several shared chains run in parallel. Even though parachains are yet to be introduced on Polkadot’s mainnet, the environment’s Acala Network turned out to be the foremost venture to safeguard a parachain slot on Rococo testnet of Polkadot a week before.
Even though sharding is one of the steps in the Eth2 plan, Vitalik Buterin, co-founder of Ethereum blockchain disclosed earlier in March that its coders are presently giving importance to chain merge between Eth2 and Ethereum. Furthermore, Buterin also conveyed optimism that layer-two rollups will step up the capability of the network adequately in the near-term, while sharding development does not have precedence. The rollups mainnet of Optimism has been under postponement since July.
