Jesse Powell, CEO of crypto exchange Kraken, said Bitcoin could reach $1 million in the next decade, Bloomberg reports.
Why It Matters: It’s no surprise to see Powell, who also said Bitcoin could “eventually replace all fiat currencies,” plant his flag firmly on the side of cryptocurrency. It’s his job after all. But the latest extreme Bitcoin predictions, which are nothing new at this point, reopens the debate of whether crypto is a “legitimate asset class, rather than a speculative fad.” The dollar isn’t going anywhere — it’s the world’s reserve currency and benchmark for global trade — but its value has declined this year.
Current Bitcoin Prices (9:00 a.m. ET):
- BTC Price: $49,500.95
- BTC Market Cap: $922,921,695,161
Bitcoin’s Big Year: While the cryptocurrency fell 3% in pre-market U.S. trading on Thursday, prices have “surged almost 600% since the start of 2020 on the back of wider mainstream adoption, with bulls seeing it as both an inflation hedge and speculative asset.”
Back And Forth: Powell said Bitcoin supporters could see it exceeding the market cap of the dollar, euro and other currencies combined. Critics, on the other hand, argue that it’s “in a giant, stimulus-fueled bubble destined to burst like the 2017 boom and bust cycle.”
The Spoils Of War: Powell of course has skin in the game. Kraken has grown from increased interest in crypto trading and rising asset prices boosting the fees it collects. Last month, Bloomberg reported it was negotiating a new funding round that could value the company at more than $10 billion.
- Kraken is considering going public in 2022, according to Powell.
Pump The Breaks: Bitcoin is still wildly volatile, which Powell acknowledged. It’s a long-negative of the digital currency which is an obstacle to adoption. Investing in Bitcoin, Powell says, should be about “strong convictions to hold” at this point.