Amid the threat of dollar debasement, Kraken CEO thinks that Lamborghinis and Bugattis may be a better measure of Bitcoin price

By Selena On Mar 31, 2021

Dan Held, Kraken’s growth lead, has revealed in a series of tweets that institutional investors betting on Bitcoin price could lead to a more intense bull market, and milder bear markets than the ones we’ve seen before. Accordingly, Kraken CEO Jesse Powell also explained why he believes that the long-term dollar-based price predictions for Bitcoin are flawed, underlining the inflationary nature of fiat.

Institutions betting on Bitcoin price may lead to the more intense bull market

Firstly, in Held’s tweetstorm, he started by clarifying that “institutions” in the cryptocurrency space refer to financial institutions such as banks, corporations that provide services as intermediaries of financial markets, hedge funds, and corporations.

Over the last year, a herd of institutions has been started moving into bitcoin. Macro traders including Paul Tudor Jones, Bill Miller, and Guggenheim have all said positive things about bitcoin and even bought the cryptocurrency. Investments banks are now entering the cryptocurrency space. Citibank has said bitcoin has the potential to become the currency of choice for international trade, while a report by Deutsche Bank has revealed bitcoin became too important to ignore with its $1 trillion market capitalization.

Similarly, corporate adoption surged last year after PayPal launched a new feature letting users buy, sell, and hold crypto. Since then MicroStrategy has invested over $2.2 billion in bitcoin, while Tesla bought $1.5 billion and started accepting bitcoin as a payment method.

11/ Microstrategy: has purchased over $2.2B in Bitcoin

– Paypal: launched the ability to buy and sell Bitcoin

– Square: in it’s “Cash App” product you can buy and sell Bitcoin for the last 2 years

– Tesla: bought $1.5B of Bitcoin and now accepts Bitcoin as payment (source)

— Dan Held (@danheld) March 27, 2021

Institutional adoption is important because without it bitcoin would be relegated to being a niche asset adopted and held by individuals who have little to no influence over global finance/politics. Bitcoin becomes more widely recognized as a store of value, it becomes further ingrained in our world.

It’s possible that institutional adoption could give rise to a bull market that is more intense than previous ones, and/or a more mild bear market.

Bitcoin is going to infinity, 1 BTC will be worth a Lambo by 2022

When Lambo? Probably by the end of the year, says @jespow.

The CEO and founder of #cryptocurrency exchange Kraken speaks to @emilychangtv and @sonalibasak on how high he thinks #Bitcoin can go https://t.co/yfkGwDPMBy

More on @crypto: https://t.co/NLRE84Up5T pic.twitter.com/55ya7epGtu

— Bloomberg Crypto (@crypto) March 31, 2021

In another development, Powell responded to the question about year-end price predictions as follows:

“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.”

And since he finds it confusing to measure the price of BTC in dollars, Powell has come up with alternative measures to value Bitcoin. And it was comical that he speculated on the value of Bitcoin on a Tesla Model 3 or per Lambo at the end of the year. Finally, he also suggested that a Bitcoin could be worth as much as a Bugatti by 2023.

Powell stated:

“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.”

While Bitcoin spent much of 2019 and the first half of 2020 trading for the price of a secondhand 2010 Honda Civic, one Bitcoin could have purchased a brand new Civic when the price broke into new all-time highs at the end of the year.

You can see the BTC price here.

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