As the leading cryptocurrency rebounds from its September crash, crypto analyst, lawyer and entrepreneur Trace Mayer is speculating that Bitcoin’s next move could be huge. After tumbling from $10,426 to a low of $7,845 last month, BTC has climbed back above $8,500.
In an interview with Preston Pysh, the host of the We Study Billionaires podcast, Mayer throws out a high-flying Bitcoin price prediction of one million dollars.
“We’re in the Information Age now. Stuff can happen like that. We could wake up tomorrow and Bitcoin could be a million dollars a coin.
That’s how fast this could happen. Will it happen that fast? I think that’s highly improbable. But it could. And that’s why you have to have some Bitcoin to be hedged against it, just in case it catches on.”
Mayer says there are many reasons why Bitcoin is uncorrelated to other assets and that this is a key reason why it could shoot to the moon.
“It’s not been investible because of the regulatory scene. It’s been misunderstood. People don’t have the infrastructure to be able to invest in it. The law doesn’t support it. Well guess what? We got 13 bills passed in Wyoming. And now…fiduciaries can invest in Bitcoin with Wyoming custodians.
All of this type of work has to get done before the larger types of capital can treat this as an asset class like they treat all the other asset classes, whether it’s real estate, bonds, stocks, etc. – commodities like gold and oil.”
Mayer says the great wealth transfer will come from all of those other assets to the holders of Bitcoin.
“These pension funds and these endowments – their wealth is at extreme risk of getting transferred to the holders of Bitcoin.”
As traditional monetary policies play out, with quasi-quantitative easing (QE) strategies leading the way, Federal Reserve Chair Jerome Powell expects the central bank to start buying more Treasury securities.
According to Powell, who spoke at the National Association of Business Economics meeting in Denver, Colorado on Tuesday,
“My colleagues and I will soon announce measures to add to the supply of reserves over time.”
“This is not QE.”
Mayer points out that there are physical limits to what the Federal Reserve and central banks can do.
“It’s going to be QE forever. They have to do that. What they’ve done is they’ve created this fractional reserve, huge credit expansion in the liquidity pyramid. And they don’t have the liquidity there for the demand deposits to make payroll, for all this type of stuff.
And this is not just the Fed. These are all the central banks because everybody’s playing the same game of fiat currency and fractional reserve banking and rehypothecation and all this stuff. And so of course they’re going to step in and keep the system from collapsing.
Bitcoin is becoming this ultimate form of collateral because you can’t confiscate it through inflation. You can’t just print more of it. It’s scarce and it’s equity. It’s nobody’s liability.”