Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Jan3 CEO Samson Mow stated that Bitcoin is poised to reach $1 million per coin this year or the next, influenced by market dynamics, the forthcoming halving, and broader economic elements.
Mow made this assertion during a podcast on March 12, reiterating earlier forecasts about Bitcoin achieving a seven-figure valuation.
Mow’s optimistic outlook on Bitcoin’s future coincides with a remarkable surge in interest from institutional investors in the crypto market, highlighted by the participation of firms like BlackRock and the rise of spot Bitcoin ETFs.
The Veblen effect
Mow indicated that the demand for Bitcoin significantly exceeds its supply — a pattern that is anticipated to escalate with the approaching Bitcoin halving, which has historically had a considerable effect on the cryptocurrency’s value.
The halving will decrease the number of bitcoins produced per block, effectively halving the new supply of Bitcoin to 3.125 BTC per block or 400 BTC daily.
Mow contends that the halving, along with the consistent demand from ETFs — reportedly acquiring around 22,000 BTC each day — creates favorable conditions for a notable price surge.
Related Posts
In addition to the immediate implications of supply and demand dynamics, Mow explored more intricate economic theories to support his forecast. He referenced the “Veblen effect,” a concept where the appeal of a product increases as its price rises.
Mow believes that as Bitcoin’s price ascends, it will become increasingly desirable, further elevating its value. This is particularly relevant as Bitcoin nears what he refers to as the “Veblen threshold” — alignment with the gold market cap, estimated to be between $450,000 and $500,000 per coin.
Exceeding this threshold could initiate a significant transfer of value from gold to Bitcoin, solidifying its position as “the new gold.”
Centralization concerns
Mow also tackled issues related to market manipulation and the potential impact of major players like BlackRock becoming Bitcoin whales. He suggested that one should always consider such entities as “bad actors.”
Mow asserted that Bitcoin’s decentralization is essential to ensure that bad actors can be monitored and stressed the necessity of decentralization in mining, development, and ownership to reduce risks within the ecosystem.
Moreover, Mow promoted the idea of expanding Bitcoin’s geographical presence by integrating nation-states. He stated that this would create a balance in power dynamics by positioning institutional players against sovereign entities.
Mow added that if Bitcoin becomes a central point of competition between significant institutional players and nation-states, it would further accelerate its growth.
The post Samson Mow says Bitcoin will hit $1 million this year amid unprecedented demand appeared first on CryptoSlate.
