Bitcoin (BTC) is currently undergoing a supercycle that could push it up to $ 1 million, according to Dan Held, who is driving Kraken’s growth.
According to Held, this market cycle is fundamentally different from previous ones. “This is a moment in a hundred years,” he said, referring to the coronavirus crisis, growing distrust of financial institutions and pressure from the central bank as catalysts for the current bull market in digital currencies.
“People are no longer just in a speculative race.“ People buy them because they see the value of bitcoins, ”he explained.
Held is also convinced that when Bitcoin reaches its full potential as digital gold, it will challenge the government’s monopoly on money.
“Bitcoin completely undermines their power and credibility by taking money out of their property,” he said.
At this stage, governments will view cryptocurrencies as a threat and take action on what Held defines as “a cryptocurrency mass extinction event.” Altcoins will not be able to survive such an attack, Held said, as most of them “weaken censorship resistance and their functions of decentralizing to increase productivity.” However, Bitcoin is specifically designed to resist such censorship.
“Satoshi built the blockchain to create bitcoin, and he’s making it an incredibly flexible tool against governments,” Held said.