Zach Pandl, CEO of Grayscale Investments, has boldly predicted that the price ofbitcoin-price-will-hit-new-highs/” target=”_blank” rel=”nofollow”> bitcoin will rise Regardless of who wins the upcoming US presidential election, he said this potential increase is due to macroeconomic trends, especially the alleged depreciation of the US dollar.
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According to Pandl, the fact that bitcoin has a limited supply makes it an excellent hedge against inflation and currency devaluation, as the US government continues to hold a debt that is now approaching a staggering $33.2 trillion. He expects the dollar to depreciate over the next 10 to 20 years, suggesting that this could result in increased investment in btc as a safe haven asset.
Factors Driving bitcoin's Potential Rise
One of the main reasons that could drive a surge in bitcoin's price could be its limited supply. It has a restricted supply of 21 million coins in circulation, unlike central bank-issued fiat money with unlimited supply. It is this very scarcity that makes it an especially ideal investment vehicle for people looking to hedge against inflation and currency depreciation.
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Grayscale bets bitcoin price will hit new records, at the expense of the US economyhttps://t.co/0HG3CPzo9O
— DL News (@DLNewsInfo) twitter.com/DLNewsInfo/status/1825576296702718286?ref_src=twsrc%5Etfw” rel=”nofollow”>August 19, 2024
Randl noted that bitcoin's rise to a trillion-dollar market cap actually happened when the dollar was strong, so it should do much better in a depreciating dollar environment. The event could attract more and more investors to bitcoin, which would continue to increase its price.
Skepticism persists despite optimistic outlook
Although Pandl is optimistic, the financial community still has its share of skepticism about whether bitcoin can really play a role in your portfolio as bitcoin-the-ultimate-safe-haven-asset/” target=”_blank” rel=”nofollow”>store of value. Many analysts have expressed doubts about whether runaway inflation can be expected or even whether bitcoin could be equivalent to traditional safe haven assets like gold. This continues to underline bitcoin’s intriguing status among all cryptocurrencies.
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The key here is that bitcoin investments face too many risks and investors should be wary of these risks before making any investment decisions. Cryptocurrencies They are known to be highly volatile, meaning their prices fluctuate based on several factors.
Cautious optimism for bitcoin
In the wake of the US election, the Grayscale executive has been adamant about bitcoin’s value rising regardless of the outcome of the US election. Of course, when it comes to investment consideration, an investor must be extremely careful about his or her risk tolerance. With the debate on whether bitcoin can be classified as a store of value always looming around the corner, it is anyone’s guess whether Pandl’s predictions will come true.
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