• Wed. Jun 22nd, 2022

Bitcoin OG Adam Back explains why he expects Bitcoin price to hit $100,000 in 2022

ByHazel R. Lang

Jun 17, 2022

On Thursday, June 16, Blockstream co-founder and CEO Dr. Adam Back explained why he believes Bitcoin price will reach $100,000 before the end of this year.

He’s the London-born “British cryptographer and cypherpunk” who was “a pioneer in digital asset research” (like David Chaum and Hal Finney). In 1997, he invented Hashcash, a hash-based proof-of-work cryptographic algorithm. Bitcoin “uses the Proof_of_work hashcash function as its mining core” and “bitcoin miners…extend their efforts to create hashcash proofs of work that act as a vote in the evolution of the blockchain and validate the blockchain transaction log “.

Yesterday, crypto educator and influencer Heidi Chakos (“@blockchainchickon Twitter), who is the co-host of YouTube channel “Crypto Tips,” tweeted that she expects the price of Bitcoin to break above $100,000 in the next bull market. Back replied to her saying he believed it was possible for Bitcoin price to hit that milestone this year.

He then talked about the macro factors that he believes will make his price prediction come true. In short, he seems to think that the Federal Reserve, which is the central bank of the United States, will decide to resume quantitative easing (QE) soon, which should cause the price of Bitcoin to resume its bullish trajectory.

However, he went on to say:

  • but what do i know 🙂 just don’t use leverage and especially not while challenge contagion is working. if you don’t have leverage you can just buy and hold and wait, so timing doesn’t matter
  • I am a permabull. so I continue to buy as I can afford. and maintain. it works long term.

A well-known Bitcoiner who seems to agree with Back’s thoughts on QE is Jack Mallers, the founder and CEO of Zap Solutions, a Bitcoin investment and payments company that uses the Lightning Network for super fats and low cost $BTC transfers.

Mallers said:

  • I tend to agree. The Fed can’t raise rates like it claims. There is too much debt in the system. They would bankrupt everything, and the market calls them to bluff. I’m not sure there’s ever been an environment with inflation running at 8%+ and bonds yielding only 3%.
  • Even 75-point rises can only fuel artificial demand for dollars for so long if confidence is lost. If there’s no more trust, it’s over. They will likely have to ease (or reverse) policy, even with inflation, especially in an election year. And for the first time, there is nowhere to run.

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