Bitcoin Going to $1 Million in the Next Decade Says Kraken CEO; Highlights ETH & DeFi
Markets are on fire because of all the money printing that's happening that makes holding USD “a very risky prospect.” Besides HODLing BTC, Jesse Powell says ETH is another asset people should be looking at.
“There is a tremendous amount of momentum behind Bitcoin right now especially as we lead up into the end of the year,” says Jesse Powell, co-founder, and chief executive officer at cryptocurrency exchange Kraken.
In his interview with Bloomberg, Jesse talked about all the uncertainty that is to come about the money printing of the dollar, and publicly traded companies accumulating a position in BTC are pushing the market forward.
Historically, the question has been how do you justify having such an exotic volatile asset on your balance sheet, and this year it's been how do you justify not having it with Bitcoin’s 300% uptrend YTD and the kind of inflation that we're seeing now in the market, said Jesse.
Jesse Powell Co-Founder & CEO Kraken
“Holding dollars seems like a very risky prospect compared to something like Bitcoin which is completely finitely predictable and even a greater store value than something like gold.”
When it comes to the Achilles heel of Bitcoin, i.e. volatility, Jesse doesn’t see it going anywhere anytime soon even though institutional investors are here. Jesse said,
“I don't think that we're going to see a lower volatility bitcoin for a long time. Maybe not until Bitcoin replaces all of the world's currencies which is something that the true believers have predicted would happen all along.”
According to him, we are going to see a lot of volatility between $28,000 and a million dollars a bitcoin which he says is “potentially another decade.”
As such, he maintains Bitcoin is “not for the faint of heart,” and instead of day trading this asset, he advises to just HODL.
Got to Go Somewhere
Although Bitcoin hasn't been alone in this bullish uptrend, as TSLA actually surged more than 675%, tech stocks and BTC are not correlated by any means.
What we are seeing right now is “that both financial assets are just kind of on fire and reacting to the money printing that's happening,” said Jesse. He goes on to explain how the loads trillions of dollars being poured into the market got to go somewhere.
Instead of going to the individuals that actually need it, it is going to people that are speculating about it. “I think we're going to see even more stimulus coming,” and that too “is just going to get poured into financial assets,” said Jesse.
So all the run-up going in the markets is a lot of it is to do with the same reasons — “people just want to get out of dollars. They don't trust national currencies. The Federal Reserve is saying that there's infinite money out there.”
Now that people understand it, “they are pumping the cash into hard assets that are generating returns or more likely to hold value than a fiat currency.”
Even in the crypto market, Bitcoin is not the only asset that is pumping, Ethereum has seen even bigger gains of 465% this year.
DeFi is another story that is “growing and becoming a bigger piece of the ecosystem,” he said, which again is largely happening on Ethereum.
“So that's a huge success story that's in the process of a major protocol upgrade. I think the future is extremely bright for Ethereum as well as for Bitcoin. And I think it's another asset that people should be looking at if they're looking for something else to get into an encrypted space.”
As for all the regulatory scrutiny, Jesse doesn't think that “there's a risk of any kind of hasty kind of clamp down on the market” as regulators are getting educated and better at understanding the risks, and if the government tried to crush cryptocurrency, “there would be a huge backlash,” he said.