A Lamborghini or a Bugatti at the price of 1 Bitcoin? That is what Jesse Powell, CEO of Kraken, predicts for the future of Bitcoin.
In a recent interview with Bloomberg Technology’s Emily Chang and Sonali Basak, Mr. Powell offered an alternative way to measure Bitcoin prices. He said that he expects Bitcoin prices to reach “infinity” and someday become the world’s currency.
“I think people are going to start measuring the price of things in Bitcoin,”Mr. Powell declared.
When the reporters repeated the same question, he mentioned that measuring the bitcoin price in the US dollar can become difficult to understand. An easier approach is measuring it against other assets, such as the Tesla Model 3s.
“…I measure it in terms of dollars, and it might be easier to understand if we measure it in terms of Teslas. Like right now, one Bitcoin for one Model 3 or you know probably by the end of the year, I think it’ll be one bitcoin per Lambo, and probably by the end of next year, it’ll be one bitcoin per Bugatti.”
He further added that the dollar is a fiat currency, and it is possible that there can be 10 times as many USD in circulation by next year, which makes it arduous to measure BTC against the dollar.
The US dollar index has lost more than 9 percent of its value after topping out in March last year. Its debasement occurred due to massive liquidity injection owing to the US government’s relentless stimulus packages and the Federal Reserve’s decision to keep interest rates near zero.
Rising inflation, increasing debts, and other factors may cause conventional paper assets to underperform. Investors are turning towards other hedging options to safeguard their money. Earlier, precious metals like Gold used to be investor safe-havens. Now, investors are choosing cryptocurrencies like Bitcoin.
The 15 year veteran of the virtual currency industry, Mr. Powell is positively upbeat about the future of Ethereum as well. More and more projects are using Ethereum. Rising interest in NFTs has driven up the use of Ethereum. He also remarked on the ongoing Ethereum 2 overhaul and mentioned that deposits to the new proof of stake contract are removing ETH from supply.
Among the altcoins, he was quick to choose Polkadot, which he said, “is sort of the next Ethereum.” Lower transaction fees, better scaling are reasons for its increasing popularity, Jesse noted.
Kraken’s CEO and co-founder also emphasized that crypto is the future of finance and in the years to come, may replace everything in the traditional system. He gave the example of Paypal, for its decision to allow users to pay using cryptocurrencies. “You know we’ve seen the tremendous traction that Cash App has had. PayPal, fortunately for them you know, they’ve been on the ball. I think you’re going to see more of that and people that aren’t keeping up with that, I think their days are numbered.”
He concluded by saying that the current Bitcoin price projection might seem bullish, but he finds them reasonable and expects higher prices in the future.