Popular cryptocurrency strategist and former Wall Street trader Max Keiser has reaffirmed he believes the price of bitcoin will hit $220,000 this year after pointing to concerns surrounding inflation.
Keiser first predicted the price of bitcoin would surpass the $200,000 mark this year back in January, in an interview with Stansberry Research, in which he said he expects BTC to surge to the point its market capitalization will be above $4 trillion. At the time, Keiser said “we are going to catch up with gold.”
In a tweet, Keiser reaffirmed his prediction saying “fiat money around the world is in a hyperinflationary collapse” against BTC.
Inflation, it’s worth noting, is the decline of the purchasing power of a currency over time. A small level of inflation is seen as positive for the economy as it promotes spending to a certain extent over saving, nurturing economic growth. If inflation grows too much and goes out of control, it’s described as hyperinflation which can cause a surge in the price of basic goods such as fuel and food.
The recently approved $1.9 trillion stimulus plan in the U.S. is adding to hyperinflation fears among investors. The stimulus package will distribute $380 billion to Americans in direct checks, $40 billion of which could, according to Mizuho Securities, be used to buy bitcoin and stocks.
Keiser, it’s worth noting, is a well-known bitcoin bull who has earlier this year argued that bitcoin’s market capitalization could surpass $300 trillion in the future, predicting the flagship cryptocurrency could surpass the U.S. dollar and become the world’s reserve currency.
Per Keiser, investors have two options: using fiat currency to benefit from its lack of volatility, but facing a “guaranteed” loss of purchasing power, or use bitcoin and deal with its volatility while benefitting from a “guaranteed” gain in purchasing power.
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