Samson Mow, a passionate Bitcoin advocate, has reiterated his previous prediction for the Bitcoin price. He believes that Bitcoin will reach $1 million by the end of this year - a tenfold increase from the current price.
Mow bases his prediction on a few of these concerns, increases in individual and institutional Bitcoin holding, Bitcoin's limited supply and the possibility of hyperbitcoinization. He also believes that this price fall of Bitcoin is only temporary, and the price will rise again in the future.
Mow’s Arguments for His Prediction
One of Mow's central claims is that Bitcoin is a rare asset. There will only ever be 21 million Bitcoins. Because this is a scarce commodity, the prices of Bitcoin accordingly increase in accordance with demand.
Yet, another of Mow's topic is the rise of use of Bitcoin. The Bitcoin is held as a store of value and medium of exchange by now more and more individuals and institutions. This increasing adoption is driving demand for Bitcoin.
Mow also believes that Bitcoin is undergoing a process of hyperbitcoinization—the point at which Bitcoin becomes the world’s dominant currency. And the Bitcoin price will soar if it does.
Additional Factors Supporting Mow’s Prediction
Besides the aforementioned factors, Mow thinks a number of factors will also push Bitcoin's price further up as follows:
- Rising Inflation: Inflation is a global problem causing reduced value of monetary signs. This makes Bitcoin a potentially attractive hedge for investors who want to protect their portfolio value.
- There are more and more countries that recognize Bitcoin as legal money. This democratizes Bitcoin access and drives demand.
- Growing Interest from Institutional Investors: Institutional investors (e.g., hedge funds and investment bank) are also growing in investing in Bitcoin. This contributes to driving up Bitcoin’s price.
- Bitcoin Halving: Bitcoin halving is known to occur every 4 years, and it is known to reduce the addition of the new Bitcoins being created. This decreases the amount of Bitcoin in supply, which has a useful effect on the Bitcoin price being able to rise.
