Expert Explains Why Bitcoin Price Could Reach $1 Million This Cycle

In the latest episode of the What Bitcoin Did Podcast, hosted by Peter McCormack, Strike CEO Jack Mallers made a stunning prediction for the Bitcoin price. Mallers have speculated that BTC could reach a valuation between $250,000 and $1 million in the current economic cycle. Mallers grounded his forecast in the broader context of global economic practices and central bank policies, highlighting the unprecedented nature of today’s financial challenges and opportunities.

Why Bitcoin is poised to hit $1 million

Mallers highlighted the global debt-to-GDP ratio, which has risen more than 300%, as a critical indicator of economic imbalance. “Global debt tells you how much time and energy has been borrowed from the human population and its future,” explains Mallers.

He argues that this disproportionate ratio indicates that governments are borrowing future resources extensively without a feasible plan for repayment. This practice, he suggests, is akin to borrowing from future generations, reducing their potential quality of life and economic freedom.

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“If you look at Global debt, you can see how much time and energy has been borrowed from the human population and its future. Then if you look at the growth, what is that metric telling us […] they borrowed a lot of our future and a lot of our time and energy with no way to pay it back,” Mallers noted.

The chief executive of the strike is concerned that it could lead to significant economic and social challenges, especially as governments struggle to manage this debt without resorting to measures such as currency devaluation. Currency devaluation, a reduction in the value of money caused by increasing the money supply, is seen by Mallers as a likely government response to unsustainable debt levels, which can erode wealth and savings at an individual level.

“I think everyone’s speculation is that devaluing currency is the way out for the government. You can steal the time and energy of everyone alive,” argues Mallers.

In this context, Mallers positions Bitcoin as a critical tool for financial autonomy. By converting their wealth into Bitcoin, individuals can opt out of their government’s economic mismanagement and protect their assets from inflation and possible currency devaluation. He emphasizes that Bitcoin’s fixed supply — limited to 21 million coins — makes it immune to the inflationary tactics that governments can use, unlike fiat currencies that can be printed at will.

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Mallers are particularly critical of central banks’ practices, especially their manipulation of economic cycles through market interventions. He argued that these interventions prevented necessary economic adjustments and eradication of inefficiencies essential to healthy economic dynamics. Such actions have halted the natural entropy of economic systems, resulting in artificially stabilized but fundamentally vulnerable markets.

“I’ve been on the record saying I think Bitcoin will go $250,000 to $1 million long before Trump or any of these rumors or whatever it is solely based on we will probably see the biggest asset bull market in the history of bull markets. why? because central banks have gradually fixed everything when something breaks, they don’t let the business cycle complete,” predicts Mallers.

Central to his criticism is the role of central banks in the bond market. Unlike other markets such as property and stocks, which have seen significant interventions to maintain stability, the bond market remains less protected, according to Mallers. This market is crucial as it underpins much of the global financial system, including the strategies governments use to manage public finances.

Mallers predict a scenario where central banks may soon be unable to maintain control of the bond market without resorting to extreme measures such as massive money printing. He projects that such actions are likely to lead to an asset price inflation not seen in any previous market cycle. Mallers’ predictions:

“So this is the cycle where central banks try to price the bond market. The amount of money printed will be astronomical, you’re going to get 2, 3, 4 or 5 COVID’s of printing and I think it’s going to send assets astronomical. High gold, real estate, stocks. Okay and then Bitcoin is the only real fixed asset we’ve ever had, and so Bitcoin will outperform everything by orders of magnitude.”

At press time, BTC was trading at $62,870.

Featured image created with DALL.E, chart from TradingView.com