According to a recent blog post, former BitMEX CEO Arthur Hayes predicted that the price of Bitcoin may reach $1 million by 2030. His prediction is similar to that of Ark Invest’s Cathie Wood, a cryptocurrency bull.
According to Hayes, the establishment of the so-called “HODL culture” has resulted from Bitcoin’s meteoric rise to a trillion-dollar asset class. The cryptocurrency has a cult-like following that refuses to sell its coins at any price. Meanwhile, according to Hayes, the price of gold might rise to as high as $20,000 per ounce.
However, Bitcoin must discover use cases because after all coins have been mined, miners will no longer be able to create incentives. They will have to rely on transaction fees as a result. The network’s hashrate will drop to zero if no transactions are made, rendering Bitcoin useless.
Hayes, who is facing five years in prison for violating the Bank Secrecy Act, believes Bitcoin will “infect” sovereign country portfolios. He believes the virus will spread “exponentially,” with El Salvador serving as the first serious test.
This year, Bitcoin’s performance has been very underwhelming. Its price fell to a multi-week low of $37,885 on Wednesday. According to several observers, the flagship cryptocurrency is on the verge of entering another bear market.
