The co-founder of the $600 million crypto investment company explains why the Bitcoin price could reach $300,000 in the next 2 years and says political unrest could increase adoption.
War zones are hard to get money in and out
As Russian forces have encircled Ukraine in the past two months, Ukraine’s central bank has sought to mitigate risk by suspending foreign exchange and stock trading. Digital money transfers have also been stopped. On February 24, the National Bank of Ukraine imposed a withdrawal limit of 100,000 hryvnia, or about $3,339 per day. In moments of chaos, what happens to cryptocurrencies when people cannot access their money from the financial institutions they have used in the past?
Arca co-founder and chief investment officer Jeff Dorman says this could lead to crypto adoption:
What we used to think was our money, if it’s in the bank If it stays, it’s actually not our money. It’s the government’s money and it’s their decision to let you in or not.
Geopolitical unrest could also lead to a big jump in Bitcoin price
Dorman says the largest cryptocurrency by market cap could reach $300,000 in the next two years. According to blockchain research firm Messari, this would mean a 765.4 percent increase from its price of around $39,193 on Tuesday. Bitcoin has seen an increase of this magnitude in less than two years before: between March 2020 and November 2021, when it rose 1.2855%.
Long-term bullish and bearish calls
But Dorman isn’t the only one making long-term bullish calls on price action.
ARK Invest founder Cathie Wood says that the price of Bitcoin will reach $1 million by 2030. Dan Tapiero, co-founder of 10T, thinks BTC could reach $500,000 in the next five years. However, Morgan Creek Capital Management CEO Mark Yusko has previously said that Bitcoin will surpass $100,000 by 2021. As a catalyst, Yusko cited Bitcoin’s network, store of value, key growth metrics, and ability to reduce income inequality. Instead, the crypto rallied to $34,810 in December 2020. Jeff Dorman, whose analysis we share as
Kriptokoin.com, says that Russia-Ukraine unrest may lead citizens on both sides to turn to less centralized means to access funds:
I think the history books will refer to February, March and April of 2022 as a really big turning point in why people care about Bitcoin. People will understand that a bearer asset like this has real value.
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