BitMEX co-founder Arthur Hayes believes Bitcoin (BTC) could explode to seven figures in just a few years.
In a new interview with co-founder and host of Impact Theory Tom Bilyeu, Hayes outlines his case for why Bitcoin may increase more than 950% from its current value in three to five years.
[adinserter block="1"]He predicts governments will massively increase their money supply while long-term Bitcoin holders will continue to grow in number due to its store of value potential.
“The supply of Bitcoin is fixed. We know [only] 21 million will ever be produced. However, as you have people like BlackRock, [Michael] Saylor at MicroStrategy, longtime holders like myself and others, people who are just getting into the game now, and believe in a future path of Bitcoin over the next five, 10, 15, 20, 30 years, are they going to sell? Why would you sell Bitcoin for fiat currency, if you implicitly believe that the US government and every other major government is going to increase the amount of that fiat currency ad infinitum? That’s the reason why you got into Bitcoin.
So as the price rises, there are less people who want to sell it. And if we have this institutional adoption through the ETFs (exchange-traded funds) and other sort of corporate finance and vehicles, those are sticky forms of holding which takes supply out of the market, which means it’s very easy to have a very exponential rise in the marginal price of Bitcoin.”
Hayes also believes retail investors will start to flood the market and allocate some portion of their retirement funds into Bitcoin to use as a hedge against inflation.
“If you take a look at the entire world in terms of the largest four countries and economic blocks, they all are printing money for various different reasons. That’s only going to continue. It’s accelerating, in fact. And so we have a diminishing supply of freely traded Bitcoin with an expanding supply of fiat currency…
And if we believe that more people are changing their mindset to say, ‘Okay, crypto, it survived 15 years. It’s going to be here for another 15, 20, 100 years, whatever, I feel okay thinking that this is going to be a store of value. I could use it to pay for things when I need, therefore, I’m going to take 2%, 3%, 4%, 5%, 10% of my retirement income or savings, and now start buying this asset.’
And so all these things come together, and that’s what creates a marginal price of $1 million per Bitcoin.”
Bitcoin is trading for $94,403 at time of writing, up 2% in the last 24 hours.
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