27.02.2024

The head of the exchange explains why Bitcoin deserves a million dollar exchange rate

Even the most daring predictions about the future value of Bitcoin can underestimate the potential of the cryptocurrency. In any case, the CEO of the Kraken cryptocurrency exchange Jesse Powell is sure of this.

In a recent interview with the Bloomberg news outlet, he stated that the price of BTC may well hit the million dollar mark in the foreseeable future. Moreover, this price level for the cryptocurrency will be «very reasonable».

Cryptocurrency exchange Kraken is a well-known participant in the blockchain asset industry. At the moment, the platform ranks third in the ranking of exchanges according to the Coingecko resource, which primarily takes into account the trading volume of sites over the last 24 hours. In addition, the list displays the so-called trust rating, which indicates whether the data of a particular exchange can be trusted. Judging by the indicator, there are no complaints about the information about Kraken.

Kraken’s trading volume over the past 24 hours has exceeded the equivalent of $ 1.67 billion. There are 55 cryptocurrencies on the exchange, which are traded in 279 trading pairs. For comparison: the leader of the niche Binance has indicators of 285 and 959, respectively.

Cryptoexchange rating

Rating of cryptocurrency exchanges from Coingecko

The platform’s reputation has been enhanced by its achievements. In particular, in September 2020, Kraken was the first to receive a license to create its own bank in the United States. Thanks to this, in the future, its clients will be able to easily exchange regular currency for crypto, officially store digital assets in the bank, as well as pay various bills in coins and even receive wages in them.

What will be the bitcoin rate

Bitcoin has long been compared to gold. Both assets are seen as ways to minimize risks against the macroeconomy because of their nature of issue – primarily limited – and global acceptance. But while the precious metal has a market capitalization of $ 11 trillion, Bitcoin’s supply is valued at just $ 913 million .

We have updated the latest data: today the BTC rate is $ 47,441. Taking this into account, the capitalization of Bitcoin – that is, the product of its value by the number of coins in circulation – dropped to 884 billion dollars.

bitcoin chart month

Monthly Bitcoin Market Capitalization Chart

Soon, the cryptocurrency may well catch up with gold in this indicator, Powell is sure. Here is his remark, in which he shares his attitude to this situation. The statement is quoted by Decrypt.

People see Bitcoin as a store of value, and more reliable than gold. So, I think that a million dollars as a target price for the next ten years is very reasonable.

Accordingly, Jesse is counting on the long term and is confident that the popularity of Bitcoin in the world will be much higher in the future. And since the user base and the value of cryptocurrency in the eyes of people will grow, this will also definitely affect the BTC rate.

Kraken cryptocurrency exchange

Kraken CEO Jesse Powell

However, replacing gold is far from the limit for Bitcoin’s potential. A major cryptocurrency may well become dominant even over traditional currencies when they are eventually destroyed by skyrocketing inflation. In dollar terms, in this scenario, the value of BTC may well rise well above one million. And even if this happens, in the future, the value of Bitcoin will no longer be measured in dollars and gold, Powell said.

By the way, the head of Kraken is not the only one who shares such optimistic forecasts regarding the crypto market. One of the first Bitcoin users, programmer Hal Finney, predicted back in 2011 that the price of BTC would eventually reach $ 10 million.

However, even with all this information, many people still do not realize the real potential of digital assets. For example, recently Ron Baron, founder of investment firm Baron Capital, stated that he «still does not understand Bitcoin.» Here is the quote from Decrypt.

We do not invest in Bitcoin, we do not invest in gold. We invest in growing stocks. I am a relatively sophisticated investor and still don’t get it. Bitcoin is a speculative investment.

Baron also noted that instead of Bitcoin or gold, his firm is helping clients invest in rising stocks to afford their living expenses, their children’s education, and overall long-term growth. We believe that this approach to investing and ignoring cryptocurrencies should be considered obsolete. Yes, Bitcoin is really a risky investment due to sharp jumps in its rate, however, taking into account the latest trends in finance, at least part of the portfolio of investment companies should be allocated for crypto.

We believe that Jesse Powell’s statement and prediction are logical, but they can come true if Bitcoin really gains worldwide recognition against the background of the weakening of gold. And since the precious metal has been available on the market for a long time, in theory this may not happen. Or it can happen – but on a smaller scale.

Be that as it may, we recommend not to mess with cryptocurrency solely for the sake of this price level. Industry forecasts very often do not come true, so you should not blindly trust them. Invest only after your own analysis and only with the amounts that you can afford to lose.

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