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Michael Saylor Predicted Bitcoin To Hit $13 Million — If It Happens, It Will Entail 'Massive Hyperinflation,' Analyst Warns
Source: Buzz FX / 21 Nov 2024 09:50:13 America/Chicago
Macro investor Jim Bianco, president of Bianco Research, has sparked a heated debate on Twitter about the potential long-term value of Bitcoin and its implications for the global economy.
What Happened: Responding to the prediction of MicroStrategy (NASDAQ:MSTR) executive chairman Michael Saylor that Bitcoin (CRYPTO: BTC) could hit $13 million by 2045, Bianco noted in a post on X on Thursday that this valuation would put Bitcoin’s market cap at around $250 trillion.
This would dwarf the current world GDP of $105 trillion and global stock markets valued at $125 trillion.
However, Bianco questions what $13 million would actually buy in 2045—perhaps only what $100,000 buys today.
His answer was stark: “I’ll offer an answer: $13 million BTC, or adding $250 trillion to wealth, will create massive hyperinflation.”
The financial analyst argued that such a dramatic increase in Bitcoin’s value would likely coincide with – or result from – the collapse of fiat currencies. In this scenario, “$13 million in 2045 will only get you the same amount as $100k today, probably less (a used Honda),” Bianco stated.
While acknowledging that a $13 million Bitcoin price isn’t necessarily unrealistic, Bianco cautioned that the conditions leading to such a valuation would be far from ideal. “It is the destruction of all value as we currently know it. It is replaced by a new measure of account, BTC,” he explained.
Bianco also raised concerns about the societal implications of such a scenario. He pointed out that “60% of the US population owns no assets and cannot come up $1,000 in an emergency,” questioning what would happen to these individuals in a world of massive hyperinflation and sky-high Bitcoin prices.
Echoing Robert Kiyosaki's thoughts, Bianco concluded "This is not something to look forward to." Kiyosaki in his recent tweet advised to buy Bitcoin today as with "$9,000 today…. you buy .01 Bitcoin today…you are a millionaire tomorrow."
Why It Matters: Bianco isn't alone in his skepticism. Economists Erzo G.J. Luttmer and Amol Amol share a similar sentiment, describing Bitcoin as a disruptive force to government fiscal policies, likening it to “an unruly guest at a carefully planned dinner.”
Peter Schiff, a long-time Bitcoin critic, also warns against such scenarios. He argues that if the U.S. were to hold Bitcoin reserves, it could trigger hyperinflation by forcing the government to print more dollars, devastating both Bitcoin and the dollar's value.
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