Renowned Economist Says Bitcoin Price Will Reach $10 Million On The Back Of This Catastrophic Event
Chief economist and global strategist, Peter Schiff has made a startling prediction regarding Bitcoin, albeit with a condition. The popular economist has revealed that BTC could potentially achieve a monumental price value of $10 million if the United States dollar depreciates due to hyperinflation.
Bitcoin To Surge $10 Million If Dollar Collapses
In a recent X (formerly Twitter) post, a crypto investor raised the question of Bitcoin potentially skyrocketing to $10,000,000 by 2031. Responding to the inquiry, Schiff acknowledged the possibility of such a scenario, however, only if the US dollar experienced a similar hyperinflation event as the German Papiermark.
The German Papiermark was the official currency of Germany in 1914 when the country’s gold standards were terminated. Due to hyperinflation, the currency depreciated significantly, causing millions of citizens to go bankrupt and forcing the government to opt for a different currency.
This hypothetical scenario implies that BTC’S value would be seen as a hedge against currency devaluation. Schiff believes that presently, Bitcoin has no tangible value beyond its positive sentiment amongst millions of crypto enthusiasts and investors. However, due to its decentralized nature and its overwhelming market capitalization of over $818 billion, Bitcoin is positioned to be a store of value in times of economic uncertainty.
BTC bulls show strength | Source: BTCUSD on Tradingview.com
Crypto Community Reacts To Schiff’s BTC And Gold Comparison
In a post on X, Schiff compared Bitcoin’s value with that of gold. The financial strategist revealed that BTC investors have always maintained a steadfast belief in the cryptocurrency’s ability to outperform gold.
He explained his statement using a hypothetical scenario where BTC declines to $10,000 in 2031 and gold climbs to $10,000. According to Schiff, irrespective of gold’s surge to the theoretical all-time high, Bitcoin proponents would still claim that “Bitcoin is up 100x in the past 20 years, while gold is up only 5x.”
The analyst’s view of Bitcoin was met with different levels of criticism from crypto commentators and investors. One crypto community member declared that when BTC potentially surpasses gold’s current market capitalization of over $13 trillion, then gold would be demonetized to its industrial utility cost.
Another crypto community member called out Schiff on his comparison of Bitcoin and gold. The crypto enthusiast revealed that back in 2011, when gold was worth $2,000 and BTC was $10, Schiff had predicted BTC’S decline, advocating for people to invest in gold because Bitcoin was supposedly going to zero. Now, 13 years later, gold remains at $2,000, and Bitcoin has surged to $40,000.
Featured image from Best Kept MTL, chart from Tradingview.com
