Bitcoin has triggered a bull run, which now seems unstoppable. The first cryptocurrency in the world by market capitalization, according to some, could reach very high levels already this year. However, not everyone thinks the same. For example, cryptocurrency exchange Kraken CEO Jesse Powell thinks these predictions are too optimistic. According to him, Bitcoin is a digital currency that is too affected by inflation.
According to Powell, Bitcoin offers evanescent goals
Jesse Powell recently gave an interview with Bloomberg, in which he answered several questions. In one of them, he was asked what the price of Bitcoin would be at the end of the year. Kraken's CEO said at that point, that in his opinion, although Bitcoin could reach very high levels by the end of the year, it could also be subject to high inflation.
According to Jesse Powell, it is not easy to give a precise measure of what the value of the asset could be in the future, but it could be compared to some luxury goods. Currently, for example, 1 BTC is equivalent to a Tesla Model 3.
At this point he made it known that by the end of the year, his value could be valid for the purchase of a Lamborghini. While for the end of 2022, it might be worthwhile to buy a Bugatti!
Kraken's CEO therefore said that it is very difficult to understand the value of the US dollar against the digital currency, due to the inflationary nature of the latter.
In his opinion, this type of asset is easier to measure with BTC than with the US dollar, because you never know what its value is. It could be worth 10 times as much next year and so measuring it against the US dollar is really difficult.
And how does it stand against other cryptocurrencies?
Powell also answered many other questions, especially about the future of cryptocurrencies and altcoins in general. He talked about Polkadot and Ethereum as the best cryptocurrencies. In fact, they are gaining a lot of interest from investors, small, medium and large.
For ETH, Powell believes there is currently a process to move the coins into the new proof-of-stake Ethereum blockchain that involves burning the old blockchain coins, essentially squeezing the supply of ETH. Powell also talked about the craze for non-fungible tokens (NFTs), which is increasing the use of the Ethereum blockchain. It predicts a price “north of $ 2.000 per coin” for ETH by the end of 2021.
Powell describes Polkadot as the "next Ethereum" thanks to the advantage of lower fees. "There are also many other cryptocurrencies that are launched on this network and I think you will see a lot of things that were on Ethereum being transferred to Polkadot for lower transaction fees."
And how do you think about his forecasts? Do you have a BTC in your pocket? Then in a couple of years you could have your brand new Bugatti in the garage next door!