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Nexo Founder Explains His Case For $100,000 Bitcoin
Founder of one of the largest crypto lending sites thinks Bitcoin could reach $100,000 in 2022. That’s because the Fed’ won’s stop printing money – making other countries turn to BTC.
Antoni Trenchev, the co-founder of Nexo, one of the largest lending sites for crypto globally, shared his predictions for crypto.
In the short interview, the Bulgarian businessman spoke about why he is bullish on Bitcoin. He also revealed why he thinks the “digital gold” could reach $100,000 in the middle of this year.
I am quite bullish on Bitcoin. I think it is going to reach $100,000 probably by the middle of 2021. That is for two simple reasons. We see institutional adoptions persevere. Quietly companies are building out their treasuries and filling them with Bitcoin.
The other reason, he says, is the Federal Reserve’s easy money policy. He believes that the Fed will keep rates low, which is excellent for crypto.
And also, the broader theme of macroeconomic realities and cheap money, in my opinion, is here to stay. This is great for crypto – which is an inflation hedge and gold 2.0.
‘No Political Will’ To Raise Rates
Crypto markets have crashed hard in early December after a series of hawkish statements by Fed Chairman Jerome Powell. Due to rising inflation, most investors believe that the Fed will raise rates in 2022.
Trenchev, however, disagrees. He believes that there will be no reversal in monetary policy. Raising interest rates, he says, will likely crash the stock market. That is something that the Fed does not want to do. In other words, Trenchev is betting that the Fed is bluffing on interest rates.
I think that as soon as we see an interest rate hike, we will see a dip into the equities and the bond market. Quite frankly, in the last few years, we haven’t seen much political will to power through any sort of correction in the traditional markets.
More Latin American Countries Could Follow El Salvador
On the other hand, adoption is also working in Bitcoin’s favour, Trenchev says. That is particularly the case for Latin America, including El Salvador. These countries face challenges in managing their currencies and may turn to Bitcoin in the future.
I think Latin America is a poster child for what you just described. Economies with some difficulties so managing their own currencies and their respective central banks facing some challenges, so definitely all of them are potential candidates of adopting cryptocurrencies as legal tender.
In September, El Salvador officially adopted Bitcoin as legal tender for all payments in the country. Its president, Nayib Bukele, said that the move gave ordinary citizens access to electronic payments. Most citizens don’t have access to traditional bank accounts. He also cited potential savings on remittances from abroad, which is a significant source of revenue for the economy.
Also notable is that El Salvador only uses U.S. dollars as legal tender. The country adopted USD in 2001 due to low confidence in its local currency. Twenty years later, they also adopted Bitcoin, and more countries could follow.
It’s hard to predict what the future holds. But Trenchev points out how far Bitcoin had gone in just 13 years. He thinks it is essential both as a store of value and as a medium of exchange.