Zach Pandel, managing director of Grayscale Investments, boldly predicted that the price of Bitcoin will go up in value Regardless of who wins the upcoming US presidential election, he said the potential increase is due to macroeconomic trends, particularly those related to the depreciation of the US dollar.
Related reading
According to Pandel, the fact that Bitcoin has a cap on its supply makes it an excellent hedge against inflation and monetary deterioration as the U.S. government continues to take on more debt, which is now approaching $33.2 trillion. He expects the value of the dollar to decline over the next 10 to 20 years, suggesting that this could lead to increased investment in Bitcoin as a safe haven asset.
Factors That May Lead to Bitcoin Rise
One of the main reasons why Bitcoin’s price could soar is its limited supply. Unlike central bank-issued fiat currencies, which have no limited supply, Bitcoin has a limited supply of 21 million coins in circulation. This very scarcity makes it an ideal investment vehicle for people who are hedging against inflation and currency devaluation.
Grayscale is betting that Bitcoin will reach new record highs — at the expense of the US economyhttps://t.co/0HG3CPzo9O
— DL News (@DLNewsInfo) August 19, 2024
Randle pointed out that Bitcoin’s $1 trillion surge actually happened when the dollar was strong, so it would likely perform much better in a weaker dollar environment. This event could attract more and more investors to Bitcoin, thus continuing to push its price higher.
Doubts remain despite optimistic forecasts
Despite Pandel’s optimism, the financial community still has a dose of skepticism about whether Bitcoin can play a role in your portfolio as an investment vehicle. Store of value. Many analysts have raised doubts about whether hyperinflation is possible or even whether Bitcoin could become equivalent to traditional safe-haven assets like gold. This continues to underscore the interesting position Bitcoin holds among all cryptocurrencies.
Related reading
The main thing here is that Bitcoin investments come with a lot of risks, and investors should be aware of these risks before making any investment decision. Cryptocurrencies Food prices are known to be highly volatile, meaning that their prices fluctuate based on several factors.
Cautious optimism on Bitcoin
In the wake of the US election, the CEO of Grayscale made a strong case for Bitcoin to rise regardless of the outcome of the US election. Of course, when it comes to investment considerations, investors should be extremely cautious about their risk tolerance. With the debate surrounding whether Bitcoin can be classified as a store of value, it is anyone’s guess whether Pandel’s predictions will come true.
Featured image from DALL-E, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.