Is This the Biggest Threat to Bitcoin Now?

Is This the Biggest Threat to Bitcoin Now?

3 min read

In another must-watch crypto-focused interview, Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News, engages in a conversation with Fred Krueger, an experienced Bitcoin investor. Krueger delves into the factors propelling the cryptocurrency’s unprecedented surge, providing insights into his price predictions utilising “power law” dynamics. Additionally, he analyses Bitcoin’s current position within its adoption curve and offers prognostications regarding the evolution of monetary systems while outlining the biggest threat to Bitcoin, the primary risk factors he perceives for its trajectory.

For a short summary of the video’s key insights, continue reading, or watch the complete interview here

The Impact of Bitcoin ETFs

Michelle: We’re seeing tremendous daily inflows into spot Bitcoin ETFs topping a billion dollars for the first time. Where are we right now in terms of what you expect in terms of demand for these ETFs?

Fred: Everybody underestimated the amount of demand for these ETFs. People were saying it was going to be $15 billion maximum for the year. We’ve already had $15 billion of new demand for these ETFs and the flows are way bigger than anybody expected. I was always very bullish on these flows and knew that this thing was going to be a hit. By that I mean $50 billion in a year. That’s the number Standard Chartered came up with and everybody was ridiculing them. I think actually it looks a little low right now.

Exploring Bitcoin’s Near, Mid- and Long-Term Prospects

Michelle: What are you seeing in terms of Bitcoin in the near term especially considering we have the halving in April?

Fred: I would say something between $90,000 to $100,000 by the halving which is only a month away. That’s the near term. The next period that people are looking for is the cycle. Bitcoin tends to work in four-year cycles. The next halving is in 2028. I would say estimates could be anywhere from $200,000 up to as high as $500,000 and even a million right by the end of 2028. The final target what Bitcoiners call hyperbitcoinisation is where we finally end up 20 – 30 years in the future. People are throwing around numbers between $10 million to $20 million per Bitcoin.

Bitcoin’s Adoption Curve

Michelle: Where are we right now in the adoption curve?

Fred: I would say we’re in the very first 1%. How many people own Bitcoin and have over 10% or 20% of their net worth in Bitcoin? I would say that number is under two million right now worldwide. There are now maybe a million Bitcoin addresses that have one Bitcoin in them, but a lot of those addresses can be owned by the same people. There is something in the order of half a million whole coiners so in the entire world half a million people, there’s just half a million people who have one Bitcoin. I think we’re about to see a complete change in that.

CBDCs: Not a Threat to Bitcoin

Michelle: How do you see Bitcoin and CBDC dynamics playing out? Can you have a Bitcoin world with a central bank digital currency?

Fred: Yes, you absolutely can. Bitcoin is not just a payment technology; it’s a savings technology. Electronic versions of the Euro are going to have the same performance relative to inflation as just your regular old Euros so it’s not a great idea to use Central Bank digital currencies to save in. Having a central bank digital currency is fine no problem, it’s an alternative to cash. I’m against it because I don’t love the fact that they’re going to monitor everything I do. I’m not in favour of the Central Bank digital currency, but it’s not going to be competition to Bitcoin at all.

Tune into this revealing video and experience Fred’s thought-provoking insights on Bitcoin. Watch it now!


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