The CEO of Jan3 and Bitcoiner, Samson Maaistill stands by his prediction that Bitcoin could reach $1 million better now than never. During a recent interview, he explained why he is sticking to his ambitious price forecast.
Why Bitcoin Would Reach $1 Million This Year
Mow mentioned during a interview with ‘What Bitcoin Did’ host Peter McCormack that BTC will reach $1 million this year, if not this year, by 2025. He further explained that BTC’s current setup is well structured for this parabolic run. First, he noted that BTC demand is much greater than supply.
Mow emphasized the Discover Bitcoin ETFs, which collect almost 4,000 BTC daily. This equates to approximately 1.5 million BTC that these funds could accumulate over a year, which could drastically reduce the amount of BTC in circulation. These Bitcoin ETFs are already reported to control a significant percentage of Bitcoin’s circulating supply.
The Bitcoin maximalist also recognized crypto exchanges receiving large BTC inflows. Therefore, Mow believes that the price should “respond accordingly” as Bitcoin demand continues to outpace miners’ supply, which will be halved over the next few years. Bitcoin halving. Even if this theory is wrong, he noted that the concept of the ‘Veblen effect’ will apply to Bitcoin.
What the ‘Veblen effect’ is about
The Veblen effect is when consumers buy an item even if its price increases. In this case, Mow believes that investors will continue to invest in Bitcoin no matter how high it rises. This continued interest in the flagship crypto could also lead to further price increases. This Veblen effect is already in full effect as Bitcoin continues to attract new investors.
Mow also laid out a scenario in which BTC reaches the market cap of gold and surpasses it. When that happens, he stated that people will start demonetizing gold and replacing it with BTC, seeing the crypto token as a better alternative. While acknowledging that some investors are already replacing their gold with Bitcoin, Mow stated that this will happen “en masse” when BTC turns gold.
Although ambitious, Samson Mow’s ambitious prediction cannot be dismissed as he had previously predicted that Bitcoin would reach a new all-time high (ATH) before the Halving event it already did. This is the first time the crypto token reached a new ATH before the halving.
At the time of writing, BTC is trading around $73,000, up in the past 24 hours according to facts from CoinMarketCap.
BTC price above $73,000 | Source: BTCUSD on Tradingview.com
Featured image from Medium, chart from Tradingview.com
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