The #crypto market is full of wild-west predictions. From Hal Finney's prediction of #Bitcoin hitting $10 million to Fidelity's prediction of $100 million per #BTC by 2030.
But recently, former #Coinbase CTO #BalajiSrinivasan predicted that BTC would hit $1 million by June, and this took the entire crypto industry by surprise. So let's see his thesis for a $1 million Bitcoin price prediction and whether this can happen or not.
How did it all start?
makes a $2,000,000 bet that within 90 days, Bitcoin will reach a price of $1,000,000. Or around a 3600% gain within the next 90 days.
What's his thesis for #BTC to hit 1 million? Banks are insolvent. Balaji stated that the bankers are lying just like they did in 2008. Most of the banks don't have the money to pay back their depositors, and this has been the case for a while.
But the governments and bankers have hidden it from the public. He also stated that the primary reason behind the banks' insolvency is their risky bets, which they took when the #FED was printing trillions, as they thought that the FED would continue to do it.
FED starting QE Balaji stated that the US banks have started to collapse like a deck of cards, and the only way to pay back the depositors is by printing money, and the FED has already stated that it will do it.
He also mentioned that once the FED starts doing it, there will be no going back, as if they stop it, the entire economy will collapse. The only way for FED to get out of this is by printing as much as possible, which could result in #BTC hitting $1 million.
What are my thoughts on this ? Balaji has some good reasoning to back up his prediction, I don't think the US dollar collapse is possible so soon. USD is the world's reserve currency, and its collapse can trigger a global recession that could be far worse than that of 2008.
In the long run, the US dollar can go to zero, just like every other fiat currency, and in that scenario, even a $1 million Bitcoin price is possible.