The forecast according to which the bitcoin rate can reach $ 1 million or more in the next 10 years was announced by the CEO of the Kraken crypto exchange Jesse Powell.
In a dialogue with Bloomberg Television reporters, Powell also said that cryptocurrency proponents believe that Bitcoin could eventually replace all major fiat currencies (not backed by gold and other precious metals).
“Now we are only guessing, but if you value it in dollars, you must understand that its value tends to infinity. True “believers” will tell you that it will reach the Moon, Mars and eventually become the world’s currency , ”he said.
Also, the Kraken CEO is aware of the risk of sharp market fluctuations, saying prices could «go up or down 50% any day.» Volatility has been one of the disadvantages of bitcoin for a long time.
“If you buy bitcoin for speculation, you have to store it for about five years. But you need to have strong convictions to do that , ”Powell said.
At the same time, the dollar remains the global reserve currency and a benchmark for world trade, although it has fallen in price over the past year.
Powell added that the bitcoin bulls are confident that over time, bitcoin will surpass the combined market capitalization of the dollar, euro and other currencies.
“The dollar is only 50 years old, and it is already showing clear signs of weakness, and I think people will start measuring the price of things in bitcoins ,” he said.
Of course, Powell is probably optimistic about Bitcoin because of his position. Companies benefit from high cryptocurrency prices because they receive commissions from every trade they make on the exchange. In February, Bloomberg reporters wrote that the exchange was in negotiations for an investment that would double the company’s valuation and exceed the $ 10 billion value.
“I think $ 10 billion is a low estimate. I would not be interested in selling shares at that price, ” Powell added.