Arthur Hayes, one of the well-known names in the cryptocurrency market, predicted that the Bitcoin price will reach $1 million by 2028.
Hayes, co-founder of BitMEX, shared this prediction during his speech at the SALT Conference in London.
“Bitcoin will be over $1 million and Ethereum will be $20,000,” Hayes said, adding that he expects a major peak in the crypto market before the next US presidential election in 2028.
Hayes' comments came just hours after Bitcoin's price fell below $100,000 for the first time since May. Bitcoin is currently trading around $103,000, 19% below its all-time high of $126,000 set in October, while Ethereum is trading at $3,340, 32% below its August all-time high.
According to Hayes' analysis, Bitcoin's rise stems from governments choosing to borrow rather than cut spending. A policy of austerity, meaning raising taxes, is unpopular with voters, so governments are choosing to continue borrowing for the sake of reelection.
More debt means an increase in the fiat money supply. In Hayes' words, central banks are “pushing the money button.” Hayes argues that this will result in increased inflation, regardless of official statistics, and that Bitcoin will emerge as a hedge against inflation during this period.
“People instinctively understand what’s going on,” Hayes said, “it’s just that everyone is trying to solve the same problem in different ways.”
The country's national debt currently stands at $38 trillion, the highest since the pandemic, according to data from the U.S. Treasury Department. According to Hayes, the likelihood of politicians abandoning the debt is extremely low.
“This problem can be solved, but only if you don't want to be elected,” Hayes said, adding that if governments stop borrowing and raise taxes, we could experience deflation on a scale not seen since the 1930s.
*This is not investment advice.
