Robert Breedlove, the founder of crypto investment firm Parallax Digital, has hinted that Bitcoin (BTC) has a strong chance of seeing a significant surge in the future, largely due to a decline in the dollar’s purchasing power.
According to Breedlove, his model calls for Bitcoin to trade at $12.5 million by 2031, which is worth $1 million based on today’s purchasing power, he said during an appearance on Altcoin Daily’s podcast Sept. 13.
“I will stand by that prediction today. I know the DXY [US dollar index] is high lately but I kind of expect this thing to get volatile before it collapses. If that’s the case, then I have a corresponding bitcoin price prediction of $12.5 million per bitcoin by 2031.”
Collapsing dollar purchasing power
He notes that the dollar is hyperinflated and may drop to zero by 2035.
“One caveat is that this would only be a $1 million bitcoin price in 2020, so 2020 purchasing power would be the equivalent of $1 million in bitcoin at the time of my prediction,” he added.
Additionally, Breedlove noted that once the dollar hits its zero bottom, there will be no need to price bitcoin.
Interestingly, the former hedge fund manager’s sentiments come at a time when the dollar is sharply appreciating against most global fiat currencies. In particular, the situation appears to be working in Bitcoin’s favor as more and more investors abandon their local currencies to invest in Bitcoin.
Consequently, Bitcoin has seen an increase in trading volume, culminating in a peak of $42.68 billion on September 29.
Other threats to bitcoin
Despite taking a bullish stance on Bitcoin, Breedlove had previously predicted that the asset could be wiped out by multiple black swan events.
As reported by Finbold, Breedlove pointed out that it is difficult to single out the specific event, but any incident that radically reduces the hash rate will potentially result in a Bitcoin wipeout.
Furthermore, he pointed out that the regulatory aspect is crucial for the future of Bitcoin. He noted that if Bitcoin threatens the existence of the traditional financial sector, regulators could step in.
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