Bitcoin is still in what some refer to as the ‘early innings’ meaning that the value of the digital asset is far from where they believe it will be in the future. This has birthed some rather optimistic predictions for the digital asset. The latest of these predictions has come from BitMex co-founder Arthur Hayes who sees the pioneer cryptocurrency reaching as high as $1 million.
What Will Drive This Growth?
There are currently a lot of socio-political pressures that are mounting on the financial markets. The most prominent of these have been the Russian invasion in Ukraine that has led to multiple sanctions on the former. Hayes touches upon this growing war and the response of the rest of the world in a blog post titled “Energy Cancelled” that was released this week, where he shared thoughts on what this could mean for crypto and other financial market assets.
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For Bitcoin, Hayes explained that the digital asset would follow gold in a “phase shift” that will come. This phase shift, he said, will see the demand for assets like gold rise. He further explained that this could very well put the physical asset on the way to $10,000. Adding that the market “could see stupendous prices for gold that seems unfathomable.”
This growth in bitcoin’s rival, gold, would also propel the digital asset forward. Hayes explains that both these assets are “hard money” of which one is analog (gold) and the other is digital (bitcoin).
He explains that the growth in gold would also see bitcoin grow rapidly, saying; “As gold marches its way above $10,000, bitcoin will march its way to $1,000,000. The bear market in fiat currencies will trigger the largest wealth transfer the world has ever seen.”
Bitcoin Is Better Store Of Wealth
In his essay, the BitMex CEO also explains using both of these digital assets as a store of wealth. He explained that gold is still being bought by banks due to the precedent that has been set historically. Since it is a physical asset, it requires shipping all around the globe for banks and nations to possess it as a store of wealth and Hayes believes that banks may tire of having to move it around.
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He said that gold is a great store of value but storing it as an individual can be quite cumbersome. Compared to this, bitcoin is not hard to store, doesn’t require much space, and is easy to move around. Additionally, Hayes believes that for people who already know to spend their fiat and save their gold, taking the leap towards spending fiat and saving bitcoin is minuscule.
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He closes the post by saying that people should not let others paint them in a bad light for wanting to protect their wealth using different monetary systems. “If even the bougiest, most establishment, sycophantic media outlets come to the same conclusions as this essay, then it’s only those who refuse to open their eyes and ears who will be left in the dust of history believing nothing is afoot,” Hayes concluded.
Featured image from BBC, chart from TradingView.com
Source: https://bitcoinist.com/heres-what-will-push-bitcoin-to-1-million/