Anthony Trenchev sees Bitcoin as an inflation hedge equivalent to gold
Antoni Trenchev, the co-founder of crypto lending platform Nexo, has given his predictions on the world’s most dominant digital asset. In an interview published yesterday, Trenchev told CNBC that he sees the world’s largest crypto coin doubling in value by the end of June this year.
“I’m quite bullish on bitcoin. I think it’s going to reach $100K this year, probably by the middle of it,” he said.
Institutional adoption and Macroeconomic realities are the key drivers
The Bulgarian crypto businessman bases his prediction to two major reasons. First, he explained that many major businesses are shifting part of their portfolios into Bitcoin investment and that this would be the major reason that would boost the value of Bitcoin. Markedly, mainstream crypto dealings in the last year provide sufficient evidence to support his assertion that companies are increasing investment in crypto.
Trenchev noted that another factor he expects to be hugely influential in his forecast, would be the continual macroeconomic realities, something that would be positive for crypto. With the ravaging impacts of the COVID-19 pandemic that have led to the massive printing of fiat money, Trenchev does not see inflation dying down any time soon. Thereby, he expects that Bitcoin, being an equal of gold as a hedge against inflation, would see the price doubling.
“We see institutional adoptions persevere quietly, companies building out their treasuries, filling it with Bitcoin. And also, the broader theme of macroeconomic realities and cheap money, in my opinion, is here to stay, which is great for crypto, which is an inflation hedge and gold 2.0.”
On Bitcoin adoption, the former Member of the National Assembly of the Republic of Bulgaria gave a prediction similar to El Salvador’s President Nayib Bukele. He shared his belief that more countries, particularly in Latin America, are likely to take up Bitcoin as legal tender this year.
There is no shortage of optimists as Bitcoin maximalist Max Keiser holds an even more bullish expectation of the Bitcoin price this year. Keiser says Bitcoin is on course to tap the $220,000 price point as the crypto coin uptake increases, and investors run to it as a hedge against inflation.
Backing up his prediction, Keiser says his view is based on his theory that suggests a direct correlation between the price of Bitcoin and the network’s hashrate. Bitcoin’s hashrate last significantly fell following the Chinese government ‘manhunt’ on mining activities, with its compute power falling up to 58.4 exahashes per second in late June last year.
However, at the time, Keiser held that the Chinese ban would only create a minor correction, and consistent with his word, he now says Bitcoin’s fundamentals are only “screaming higher.” Notably, on January 2, the network’s hashrate peaked at a record 203.5 exahashes per second.