Kraken CEO Jesse Powell appeared on Bloomberg to explain why he thinks dollar-based long-term market forecasts for Bitcoin are inaccurate, stressing the inflationary value of fiat currencies.
In response to a query about Powell’s end-of-year price forecasts, Kraken’s CEO said, “I remember I said Bitcoin is going to infinity, which is sort of hard to grasp since I’m weighing it in terms of dollars.”
Powell predicted that the value of Bitcoin could grow from its current ‘price’ of one BTC per Tesla Model 3 to “one Bitcoin per Lambo” by the end of the year and “one Bitcoin per Bugatti” by 2023, proposing alternate methods for valuing Bitcoin. Powell continued, saying:
“To the crypto community, I think those kinds of assets are easier to measure Bitcoin against because you never know where the dollar is going to be. There could be 10 times as many U.S. dollars out there a year from now, so it’s really hard to measure Bitcoin against the dollar.”
While Bitcoin spent much of 2019 and the first half of 2020 trading for the price of a secondhand 2010 Honda Civic, one Bitcoin could have purchased a brand new Civic when the price broke into new all-time highs at the end of year.
When asked about Ethereum, Powell stressed the significance of the thriving non-fungible token market, saying, “Much of the NFT operation is really pushing up the use of Ethereum.”
Powell also stressed the confusion surrounding the execution of the Eth2 overhaul, as well as the fact that deposits to Ethereum’s staking contract are actually withdrawing Ether from supply.
On the subject of altcoins, Powell mentioned Polkadot, implying that the network might be the “next Ethereum” due to scaling and fee problems.
“There are a lot of other coins that are being launched on top of this network, and I think you’ll see a lot of things that were on Ethereum be ported over to Polkadot,” he said, noting the “lower transaction fees” associated with Polkadot.
Polkadot aims to outperform other crypto networks in terms of speed and reliability by handling transactions using a “parachain” architecture in which many sharded chains run in parallel. Although parachains are yet to appear on Polkadot’s mainnet, the ecosystem’s Acala Network was the first to capture a parachain slot on Polkadot’s Rococo testnet last week.
While sharding is on the Eth2 roadmap, Ethereum co-founder Vitalik Buterin announced earlier this month that its developers are actually prioritising the Ethereum-Eth2 chain fusion. Buterin has expressed optimism that layer-two rollups would scale the network adequately in the short term, despite the fact that sharding is not a growth priority. Optimism’s mainnet rollups have since been postponed until July.
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