In the latest episode of the “What Bitcoin Did” podcast, hosted by Peter McCormack, Jack Mallers, CEO of Strike, made a stunning prediction for Bitcoin price. Mallers speculated that BTC could reach a value between $250,000 and $1 million in the current economic cycle. Mallers based his prediction on the broader context of global economic practices and central bank policies, emphasizing the unprecedented nature of today’s financial challenges and opportunities.
Why Bitcoin is close to hitting the $1 million mark
Mallers highlighted the global debt ratio, which has risen to over 300 percent, as a critical indicator of economic imbalance. “Global debt shows how much time and energy has been borrowed from humanity and its future,” Mallers explains.
He argues that this disproportionate ratio is a sign that governments are borrowing future resources on a large scale without having a feasible plan for repayment. This practice, he suggests, is akin to borrowing money from future generations, thereby reducing their potential quality of life and economic freedom.
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“If you look at global debt, you see how much time and energy has been borrowed from humanity and its future. Then when you look at growth, what that metric tells us (…), they have borrowed a lot of our future and a lot of our time and energy with no way to pay it back,” Mallers noted.
The Strike CEO is concerned that this could lead to significant economic and social problems, especially as governments struggle to manage this debt without resorting to measures such as currency devaluation. Currency devaluation, a reduction in the value of money by increasing the money supply, is seen by Mallers as a likely government response to unsustainable levels of debt that could erode wealth and savings at an individual level.
“I think everyone is speculating that currency devaluation is the government’s way out. It can steal everyone’s time and energy,” Mallers argues.
In this context, Mallers positions Bitcoin as a crucial tool for financial autonomy. By converting their wealth into Bitcoin, individuals can evade their government’s economic mismanagement and protect their wealth from inflation and potential currency devaluation. He emphasizes that Bitcoin’s fixed supply – limited to 21 million coins – makes it immune to the inflationary tactics that governments might employ, unlike fiat currencies that can be printed at will.
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Mallers is particularly critical of the practices of central banks, particularly their manipulation of economic cycles through market interventions. He argues that these interventions have prevented necessary economic adjustments and the elimination of inefficiencies that are essential for healthy economic dynamics. Such measures have hindered the natural entropy of economic systems and led to artificially stabilized but fundamentally vulnerable markets.
“I’ve stated publicly that I think Bitcoin will go to $250,000 to $1 million long before Trump or all these rumors or whatever. It’s based entirely on the fact that we’re probably going to see the biggest asset bull market in the history of bull markets. Why? Because central banks have gradually fixed the prices of everything whenever something breaks down. They don’t let the economic cycle end,” Mallers predicts.
His criticism focuses on the role of central banks in the bond market. Unlike other markets such as real estate and stock markets, where there has been significant intervention to maintain stability, the bond market is less protected, says Mallers. This market is crucial because it underpins much of the global financial system, including the strategies that governments use to manage their public finances.
Mallers predicts a scenario in which central banks may soon be unable to maintain control of the bond market without resorting to extreme measures such as massive money printing. He predicts that such measures would likely lead to asset price inflation the likes of which has not been seen in any previous market cycle. Mallers predicts:
“So this is the cycle where central banks are trying to price the bond market. The amount of money that will be printed will be astronomical. There will be 2, 3, 4 or 5 COVID-19 thresholds worth of money printed and I think that will drive assets to astronomical heights. High gold prices, real estate prices, stock prices. All right, and then Bitcoin is the only really fixed asset we’ve ever had and so Bitcoin will outperform everything else by orders of magnitude.”
At press time, BTC was trading at $62,870.
Featured image created with DALL.E, chart from TradingView.com
