Bitcoin will eventually reach $1 million?! Super bulls predict bitcoin will become reserve currency JP Morgan warns of risks

Fx168 financial news (Hong Kong) an asset manager said that the long-term value of bitcoin may rise to US $1 million and become the global reserve currency. Anthony pompliano, co-founder and partner of Morgan Creek digital assets, a cryptocurrency hedge fund, said bitcoin could reach $500000 by the end of the decade. Eventually, he added, the price of each bitcoin could reach $1 million, but did not give a specific time. “I think bitcoin will eventually become the global reserve currency. I think bitcoin will eventually be much bigger than the market value of gold, “he said on CNBC’s latest show beyond the valley. Bitcoin prices have soared in the past few months, breaking through $50000 for the first time this week. There are many factors behind the bitcoin boom. On the one hand, institutional and retail investors actively participated. Big companies are also increasingly involved in cryptocurrencies. Square bought some bitcoin last year, and according to a paper filed this month, Elon Musk’s electric car maker Tesla bought about $1.5 billion. Both musk and square Founder Jack Dorsey are supporters of bitcoin. At the same time, global central banks have been loosening monetary policy, such as reducing interest rates and purchasing assets through quantitative easing programs, to help cushion the economic impact of the new coronavirus. “Trillions of dollars have been printed and poured into the economy, from individuals to financial institutions to companies, and everyone is looking for the best way to protect their purchasing power around the world, and they ultimately decide it’s bitcoin,” pompliano said of the reasons behind the bitcoin boom. The bitcoin bull’s prediction that bitcoin could reach $1 million is based on several factors, including the scarcity of the cryptocurrency (the upper limit of bitcoin is 21 million), and the decentralized nature of the technology. No central institution like the central bank can control bitcoin. Instead, the bitcoin network is made up of miners who process transactions. These miners operate a large number of specialized computers to carry out the bitcoin mining process. Because there are many different miners, no single entity can control the network. Moreover, because the computers they use are usually very powerful machines, bitcoin supporters claim that the network is one of the most powerful computer networks in the world. “As more and more people enter the market, liquidity will increase. The greater the liquidity, the greater the utility. The greater the utility, the more stable the price That’s what happens, “pompliano said. “If you think about the Internet economy, there is no local currency (bitcoin) will eventually become the global reserve currency of the Internet generation. ” However, as the cryptocurrency continued to rise, JPMorgan warned of future risks. In January, JPMorgan released a report to clients setting its “theoretical” long-term target price for bitcoin at $146000, as bitcoin began to compete with gold. Gold is generally regarded as a “safe haven” asset, and investors will rush to gold in times of political conflict or financial market turbulence. Bitcoin is now beginning to build such a reputation. “Bitcoin is competing with traditional gold and bitcoin is a form of digital gold,” Nikolaos pangirtzoglou, JPMorgan global market strategist, said on CNBC’s beyond the valley The value of gold held by the private sector for investment purposes alone is about $2.7 trillion, he said. To reach this level, bitcoin needs to cost about $146000. But there are also some warnings, the biggest of which is the volatility of bitcoin prices. This digital currency is known for its dramatic price fluctuations. Panigirtzoglou says bitcoin is five times more volatile than gold. JPMorgan strategists say the key to the convergence of bitcoin volatility and gold is the acceptance of institutions. “The faster institutions accept, the faster volatility converges,” he says However, there are still risks in the current rally. Although this is driven by institutional investors, the participation of retail investors is also high. “The biggest risk is that the liquidity impulse we’ve seen in the last few months has slowed down significantly from now on,” panigirtziglou said. “Especially when the economy reopens, people come back to the office and they have less time to trade at home, so retail flows have slowed down since then,” he added

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