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Why buy a Tesla with 1BTC when you can soon buy a Lamborghini says Kraken CEO

Photo of: Joseph Stone
by Joseph Stone

Why settle for a Tesla, when you can afford a luxury car like a Lamborghini or a Bugatti. That’s how Kraken CEO Jesse Powell sees the future value of Bitcoin.

Investors are interested, not surprisingly, in Bitcoin’s price forecast. In this area, the range is proving to be wide to say the least. A price of $100,000 is often cited. However, for some crypto players, Bitcoin could go much higher.

When asked about this by Bloomberg, Kraken exchange CEO Jesse Powell warns against making predictions based on the dollar. Why? Mainly because of the devaluation of the world’s leading currency.

“I think I said bitcoin was going to infinity and that’s a little hard to understand because I’m measuring it in terms of dollars,” he says. How do you measure it if not in fiat currency like the dollar?

Jesse Powell therefore prefers to determine the price of Bitcoin in relation to a form of purchasing power. For example, since Tesla announced that it would accept Bitcoin as a form of payment, one BTC is now equivalent to one Tesla Model 3 car.

And in the long run? Kraken’s CEO expects to have the value of a Lamborghini by the end of 2021. However, he does not specify a model of the sports car manufacturer. Thus, the range extends from 180,000 euros to over 370,000 euros, depending on the model.

This gives an idea of the rise in Bitcoin that Jesse Powell is counting on. And it should continue until 2023. In fact, by that time, one Bitcoin could be worth one Bugatti.

The most “affordable” model from the manufacturer still reaches $930,000. Do such forecasts represent a relevant indicator for investors? At least, this is the opinion of Kraken’s CEO.

“For the crypto community, I think these types of assets are simpler to measure Bitcoin,” he argues. The justification? It would be complex to assess the value of the dollar. “There could be 10 times more U.S. dollars in a year. So it’s very difficult to measure Bitcoin against the dollar. “

Can Ether eventually hope to reach such valuations as well? What is certain for Jesse Powell is that Ethereum is currently taking full advantage of the boom in NFTs, the non-fungible tokens.

This will protect the blockchain from its rivals, such as Polkadot, which is surfing on Ethereum’s congestion and fees? This competitor is not lacking in potential, Powell believes. “I think you’ll see a lot of things that were on Ethereum being ported to Polkadot,” he anticipates.