While the threat of dollar debasing is still ongoing, Jesse Powell of Kraken says that the Bitcoin price will still rise as high as Lambo and Bugatti’s prices in the near future. During his interview with Bloomberg, Jesse Powell of Kraken stated that it is wrong to forecast Bitcoin’s long-term direction based on the US dollar because fiat currencies are subject to inflationary pressures.
Reacting to Powell’s response when he was asked about Bitcoin’s long-term forecast, Powell noted that the leading cryptocurrency will keep soaring to higher levels which are very difficult to understand because people still mistakenly peg it to the US dollars.
Using dollar to measure Bitcoin is wrong
Suggesting several other options to value Bitcoin, the Kraken Chair predicted that Bitcoin price might rise to as much as one BTC for Tesla Model 3 Lamborghini before December this year. One BTC will be equal to one Bugatti in 2023. He remarked that using such types of financial instruments is suitable to peg with Bitcoin because the US dollar can fluctuate to an unknown level.
Next year, the equivalent of 10 US dollars will be used to compare BTC with; hence, it is very difficult to peg Bitcoin with the USD. In 2019, BTC was worth the value of a secondhand 20 10 Honda Civic; it was possible that one BTC could be worth an equivalent of a new Civic the time Bitcoin broke a record level.
Concerning Ethereum, Powell underscored the significance of the increasingly popular non-fungible token (NFT) industry, stating that: “The majority of NFT transactions are contributing to the growth Ether.”
Furthermore, Powell emphasized the ambiguity shrouding the Eth2 operations as he stated that Ethereum is becoming dry in supply due to the deposits to Ether’s staking contract. Concerning altcoins, Powell highlighted the hype about Polkadot, stating that assumptions that the Polkadot might constitute “the next Ethereum” because of the scaling and fee problem.
Polkadot offers high efficiency and low transaction fees
Powell said that many tokens are operating on the Ethereum network, and some operations on Ethereum will be moved to Polkadot because of its cheaper transaction costs. Polkadot provides efficiency and faster speed than many of its counterparts among other cryptocurrencies because it processes transactions via “parachain” infrastructure that involves many sharded chains operating simultaneously.
Although parachains have not started launching on Polkadot’s mainnet, the Acala platform was the First project to secure a parachain slot on Polkadot’s Rococo testnet. While sharding is available on the Eth2 framework, Ethereum co-founder Vitalik Buterrin disclosed that the network’s developers presently take care of the chain merge between Ether and Eth2.
Meanwhile, Bitcoin has been rising steadily because of so many factors, such as the entrance of institutional investors like pension funds, investment schemes, and even influential individuals. In 2017, most crypto traders were retail traders who opted for the digital currency because of its relative scarcity and its unique features compared to traditional global finance.