Jack Mallers, the CEO and inventor of Strike, a global Bitcoin application, commented on his unwavering firm trust in Bitcoin during a recent conversation with analyst Scott Melker. Melker was present for the conversation. Melker made this observation in response to a question regarding the recurrent cycles and price reductions in Bitcoin.
He stated that these variations frequently prompt investors to panic and sell at a loss, which compounds the volatility of the market. A new bull cycle was mentioned to him, along with the halving event and the four-year cycle that normally determines the behavior of the Bitcoin market. He made a veiled reference to the likelihood of a new bull cycle. Mallers was then urged by Melker to make any big predictions regarding the price of Bitcoin during the following twelve to eighteen months at that time.
As a confident response to Melker’s inquiry, Mallers remarked, “I believe that we are somewhere between two hundred fifty thousand dollars and one million dollars.” This range is quite broad, but it is important to keep in mind that we are attempting to price the most difficult type of currency with quickly declining paper currency, which makes it dependent on the debasement of paper currency. He brought attention to the substantial impact that the printing of dollars has had on the valuation of Bitcoin, leading him to speculate that Bitcoin may reach one million dollars.
In addition, Mallers noted that the halving cycles were a reduction in the inventory of Bitcoin. He compared it to the drought that occurred in 1988, which significantly limited the amount of maize that was available and made price discovery quicker. His idea that the halving will cause a period of price discovery for Bitcoin as a result of the reduced supply is demonstrated by this analogy.
The Bigger Catalyst: Sovereign Debt Market
Mallers, on the other hand, believe that the sovereign debt market stands to be an even more significant driver of Bitcoin’s prospective rise. It was brought to his attention that central banks, who have traditionally attempted to maintain price stability for the sake of social stability, are now confronted with the formidable obstacle of the sovereign debt market, also known as the bond market.
So, I believe that a Bitcoin worth one million dollars is feasible. Despite the economic unpredictability, Mallers came to the conclusion that it is not impossible, thereby highlighting his confidence in the future of Bitcoin.
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