The co-founder of a $600 million cryptocurrency investment company explains why the price of Bitcoin could reach $300,000 in the next 2 years, and says political unrest could increase its adoption.
War zones are places where it is difficult to enter and export money.
As Russian troops have been besieging Ukraine for the past two months, Ukraine’s central bank has sought to mitigate risks by suspending foreign exchange and stock trading. Digital money transfers have also been stopped. On February 24, the National Bank of Ukraine introduced a withdrawal limit of UAH 100,000, or about $3,339 per day. What happens to cryptocurrencies in moments of chaos when people cannot access their money from the financial institutions they used in the past?
Arca co-founder and chief investment Officer Jeff Dorman says this could lead to the adoption of cryptocurrencies:
What we used to think of as our money, if it’s in the bank, is not really our money. It’s the government’s money, and it’s their decision whether to let you in or not.
Geopolitical unrest can also lead to a big jump in the price of bitcoin.
Dorman says that the largest cryptocurrency by market capitalization could reach $300,000 in the next two years. According to the blockchain research company Messari, this will mean an increase of 765.4% compared to the price of about $39,193 on Tuesday. Bitcoin has seen such growth in less than two years before: from March 2020 to November 2021, when it grew by 1,2855%.
Long-term bullish and bearish calls
But Dorman is not the only one making long-term bullish price movement forecasts.
Katie Wood, founder of ARK Invest, says that by 2030, the price of bitcoin will reach $1 million. Dan Tapiero, co-founder of 10T, believes BTC could reach $500,000 in the next five years. However, Morgan Creek Capital Management CEO Mark Yusko has previously stated that bitcoin will exceed $100,000 by 2021. As a catalyst, Yusko named the Bitcoin network, a means of saving, key growth indicators and the ability to reduce income inequality. Instead, the cryptocurrency rose to $34,810 in December 2020.
Jeff Dorman, whose analysis we share on Somagnews, says that unrest between Russia and Ukraine may lead to citizens of both sides resorting to less centralized means of access to funds:
I think in the history books, February, March and April 2022 will be called a really big turning point in why people care about Bitcoin. People will understand that such a bearer asset has real value.