Kraken CEO Jesse Powell explained to Bloomberg why he believes Bitcoin’s long-term dollar price predictions are inaccurate, emphasizing the inflationary nature of fiat currencies.
Kraken CEO, answering a question about year-end price predictions, stated that: “I said Bitcoin is heading towards infinity, and it’s a bit hard to understand because I’m measuring in dollars.”
Offering alternative methods of valuation for Bitcoin, Powell said that a Bitcoin could currently buy a Tesla Model 3, while a Lamborghini with a Bitcoin at the end of the year and Bugatti in 2023 Powell added:
“I think it would be easier for the crypto community to measure Bitcoin with these kinds of assets, because you don’t know what the dollar will be like. In a year, the current dollar amount can be 10 times. So pricing Bitcoin in dollars is really difficult.”
Bitcoin spent most of 2019 and the first half of 2020 at the same price as a 2010 model pre-owned Honda Civic. The value of a Bitcoin came to a level that would buy a new Civic when BTC broke a record at the end of the year.
Asked about his opinion on Ethereum, Powell touched upon the non-tradable tokens (NFT) that have exploded in recent months: “The increase in NFT activity increases the use of Ethereum.”
While there is uncertainty about when the ETH 2.0 update will be complete, Powell pointed out that the Ethereum staking contract reduces the supply of Ether in circulation.