Kraken is the leader of the crypto exchange. As a result, Kraken’s CEO Jesse Powell should be pushing more on the success of Bitcoin. However, this is not turning out to be the case as he is projecting a negative future and saying that Bitcoin could reach USD 1 Million in the next decade.
Bitcoin Could Reach USD 1 Million
In a Bloomberg Television interview, the Kraken CEO, Jesse Powell, said that Bitcoin could reach USD 1 Million in the next decade. Supporters also said that it could replace all major fiat currencies.
“We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he said. “The true believers will tell you that it’s going all the way to the moon, to Mars, and eventually, will be the world’s currency.”
He also said the San Francisco-based Kraken is thinking of going public next year. In the world of Bitcoin, these extreme predictions are nothing new. The Bitcoin owners gain profit from convincing people that it is a legitimate currency rather than a speculative fed. However, Dollar still remains the world’s reserve currency, and it is still the benchmark for global trade.
Powell says that the Bitcoin bulls know the value of it. They believe that Bitcoin will exceed the combined market cap of the dollar, euro, and other currencies one day.
The dollar “is only 50 years old, and it’s already showing extreme signs of weakness, and I think people will start measuring the price of things in terms of Bitcoin,” he said.
The cryptocurrency has seen a price surge of over 600% from the start of 2020. However, its values slipped by about 3% in early US trading on Thursday. It is now hovering around USD 49,000.
Critics believe that the cryptocurrency is in a giant bubble of popularity that will burst. Something similar along these lines happened in the 2017 boom and bust cycle.
Kraken actually gains profits from higher prices of the cryptocurrency as it takes fees from the increasing trading. Bloomberg also reported that Kraken was in talks to raise new funding. As a result, The funding would increase the company’s value to double, making it worth USD 10 Billion or more.
“Personally, I think $10 billion is a low valuation,” Powell said. “I wouldn’t be interested in selling shares at that price.”
However, the Kraken CEO also admitted the potential for wild swings in the market. He said that the prices could “move up or down 50% on any given day.”
This is unpredictability has been one of the most negative aspects of Bitcoin. This leaves it up for speculation only, and it is hard to do business with it.
If you are buying into Bitcoin out of speculation, you should be committed to holding for five years,” Powell said. “You have to have strong convictions to hold.
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