Jesse Powell, the CEO of Kraken, has recently spoken about why he thinks dollar-based long-term price predictions for Bitcoin are erroneous, highlighting the inflationary nature of fiat currencies.
When asked about the end-of-year price predictions, Powell declared: “I think I said Bitcoin is going to infinity and that’s kind of hard to comprehend because I’m measuring it in terms of dollars.”
Regarding alternative ways of measuring Bitcoin, Powell predicts that Bitcoin could go from the current “price” of one Bitcoin per Tesla Model 3 to “one Bitcoin per Lambo” by the end of 2021 and to “one Bitcoin per Bugatti” by 2023. He also said:
“To the crypto community, I think those kinds of assets are easier to measure Bitcoin against because you never know where the dollar is going to be. There could be 10 times as many U.S. dollars out there a year from now, so it’s really hard to measure Bitcoin against the dollar.”
Bitcoin spent pretty much all of 2019 and the first part of 2020 at a value that could let you acquire only a secondhand 2010 Honda Civic; at the end of 2020, though, when the price started to skyrocket, you could buy a new Civic with only one Bitcoin.
On the topic of Ethereum, Powell highlighted the importance of the booming non-fungible token sector, saying “All of the NFT activity is really driving up the use of Ethereum.”
The CEO also talked about the uncertainties regarding when the ETH2 overhaul will be finished, mentioning that the current deposits to ETH’s staking contract are now removing Ether from the supply.
In regards to altcoins, Powell mentioned the buzz that surrounds Polkadot, saying the network may comprise “the next Ethereum” as a result of scaling and fee issues.
“There are a lot of other coins that are being launched on top of this network, and I think you’ll see a lot of things that were on Ethereum be ported over to Polkadot,” he mentioned, highlighting the “lower transaction fees” that come with Polkadot.
Polkadot has the ability to offer better speed and efficiency compared to other crypto networks thanks to the “parachain” architecture, in which several sharded chains operate in parallel. Parachains are yet to be released on Polkadot’s mainnet, but the ecosystem Acala Network became the first project that secured a parachain slot on Polkadot’s Rococo testnet a week ago.