Bitcoin has lost 65 percent of its value from its all-time high of $68,990. It temporarily fell below $18,000 in June, indicating a 75 percent decline from its all-time high. When he spoke on Kitco News a year ago, Hex creator Richard Heart forecasted a price decline of 85 percent for Bitcoin.
“During my previous visit here, I predicted that Bitcoin would drop below $10,000,” he remarked. “Bitcoin has plunged 75% thus far, 10 percentage points short of my aim of 85%.”
Heart criticized institutions with substantial Bitcoin holdings, such as Celsius, MicroStrategy, and Three Arrows Capital, for establishing leveraged bets in the cryptocurrency, so contributing to a bubble.
“Michael Saylor used leverage, and I think he’s down 30% on his Bitcoin stack,” said Heart. “Both the Government of El Salvador and ARKK invest are in decline. I am the only one who is not in ruins. I rang the bell on the deck.”
The National Bureau of Economic Research has not declared a recession in the United States. However, Commerce Department data released on Thursday indicates that the U.S. economy has undergone two consecutive quarters of negative GDP growth, which is the usual definition of a recession. As the Federal Reserve increases interest rates, recession risks might possibly increase. Heart said that the prognosis for Bitcoin during a recession is gloomy.
“There is a clear correlation between Bitcoin and the stock market,” he stated. “As interest rates increase, stock prices decline. As markets decline, so does Bitcoin. When Bitcoin declines, the majority of other cryptocurrencies also decline.”
However, Heart emphasized the significance of relative pricing.
“If the value of your investment falls 20%, but the price of everything you like to purchase also falls 20%, you break even,” he said. “Therefore, the only factor that counts is the proportion of your holdings to the items you want to acquire… I am indifferent about GDP growth or lack thereof. What is its effect on me? I worry about Ferrari pricing, and Rolex prices. I am unaware of the price of a gallon of milk. I’m too wealthy to care anymore.”
Recently, on a podcast, Heart referred to Bitcoin whales as “centralized scumbags.” He cited the Grayscale Bitcoin trust as an illustration. He said, “Grayscale has 3 percent of all Bitcoin. This is a centralized counterparty that has the option of not paying you.”
He also said that Bitcoin exchanges are subject to hacking.
“The massive hacks are caused by idiots who don’t understand why crypto was developed and put their money in another person’s wallet,” he stated.
The majority of cryptocurrency exchanges do not give customers custody over their own wallets; instead, they only keep clients’ coins in trust. This may put customer accounts in danger, since exchanges are vulnerable to hackers and frauds. Heart said that almost every communication had been compromised at some time.
