Chief Economist and Global Strategist, Peter Schiff has made a surprising prediction about bitcoin, albeit with one condition. The popular economist has revealed that btc could potentially reach a monumental price value of $10 million if the US dollar depreciates due to hyperinflation.
bitcoin will rise by $10 million if the dollar collapses
In a recent post by X (formerly Twitter), a cryptocurrency investor raised the question of bitcoin potentially skyrocketing to $10,000,000 by 2031. In response to the query, Schiff acknowledged the possibility of such a scenario, however, only if the US dollar experienced a hyperinflation event similar to that of the German paper mark.
The German paper mark was Germany's official currency in 1914, when the country's gold standard was ended. Due to hyperinflation, the currency depreciated significantly, causing millions of citizens to go bankrupt and forcing the government to opt for a different currency.
This hypothetical scenario implies that the value of btc would be seen as a hedge against currency devaluation. Schiff believes that bitcoin currently has no tangible value beyond its positive feeling among millions of cryptocurrency enthusiasts and investors. However, due to its decentralized nature and overwhelming market capitalization of over $818 billion, bitcoin is positioned to be a store of value in times of economic uncertainty.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/Renowned-Economist-Says-Bitcoin-Price-Will-Hit-10-Million-After" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″/>
btc bulls show strength | Source: BTCUSD on Tradingview.com
crypto Community Reacts to Schiff btc And golden comparison
In a post on X, Schiff compared The value of bitcoin with that of gold. The financial strategist revealed that btc investors have always maintained a firm belief in the cryptocurrency's ability to outperform gold.
He explained his statement using a hypothetical scenario where btc falls to $10,000 in 2031 and gold goes up to $10,000. According to Schiff, regardless of gold's rise to the theoretical all-time high, bitcoin proponents would still claim that “bitcoin has risen 100x over the past 20 years, while gold has only risen 5x.”
The analyst's view on bitcoin was met with varying levels of criticism from crypto commentators and investors. A member of the crypto community declared that when btc potentially surpasses gold's current market capitalization of over $13 trillion, then gold would be demonetized at its industrial utility cost.
Another member of the crypto community shout Schiff in his bitcoin and gold comparison. The cryptocurrency enthusiast revealed that in 2011, when gold was worth $2,000 and btc was worth $10, Schiff had predicted the fall of btc, advocating for people to invest in gold because bitcoin was supposedly going to zero. Now, 13 years later, gold remains at $2,000 and bitcoin has risen to $40,000.
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