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Famous Bitcoin advocate and CEO of JAN3, Samson Mow, has ignited a heated debate within the BTC community with his bold prediction about the potential increase in Bitcoin’s value. Mow, who has been instrumental in the adoption of Bitcoin at a national level, particularly in El Salvador, also explained why he believes Bitcoin will reach $1 million.
Analysis of Bitcoin’s Potential to Reach $1 Million
Mow supported his prediction by examining Bitcoin’s historical growth. Drawing parallels with previous milestones, Mow highlighted the rapid rise from $1,000 to $20,000 within approximately nine months in 2017.
Mow emphasized that current conditions, including the participation of institutional money and developments such as ETFs, could potentially drive Bitcoin from $50,000 to $1 million.
Bitcoin analyst Bit Paine supported Mow’s prediction with a mathematical analysis of the rate of Bitcoin’s price increase. Taking into account fundamental factors such as supply and demand, Paine predicted the new supply for the next cycle and considered the potential sale of long-held Bitcoin based on HODL Waves.
Paine estimated that 15-20% of the old circulating supply could be sold, similar to previous cycles. In an extreme scenario, if 20% of the old BTC is sold in the next four years, it would amount to approximately 3.8 million BTC.
Potential Sources of Capital for Bitcoin’s Meteoric Rise
Paine identified two major potential sources of capital for Bitcoin to reach $1 million. Firstly, by referring to retirement savings in the United States, a modest reallocation of 5% to Bitcoin could bring about $1.75 trillion. Secondly, Paine evaluated the treasury holdings of U.S. companies and estimated that a 10% investment in Bitcoin could contribute an additional $100 billion.
Beyond these sources, Paine highlighted various factors that could push Bitcoin’s price to $1 million. These factors include increased adoption by nation-states, the effects of new money creation, and the determination of current holders. Paine also emphasized the role of technological developments like Taproot in increasing Bitcoin’s appeal.
While the BTC community contemplates the feasibility of such a meteoric rise, the debate sparked by Mow’s prediction underscores the dynamic and speculative nature of the cryptocurrency market. Only time will tell if this seven-figure prediction will come true during the bull season.
