Mike Belshe, CEO of BitGo, shared his insights and predictions on Bitcoin’s price trajectory, institutional adoption, and macroeconomic factors influencing the cryptocurrency market during an interview at Consensus 2024. He predicts that Bitcoin’s price will reach $125,000 by the end of 2024, driven by macroeconomic factors and increasing institutional demand. Currently, only about 5% of institutional money is invested in Bitcoin, but Belshe expects this number to increase as large institutions adopt a more cautious but methodical approach.
Belshe highlights the importance of Bitcoin as a hedge against fiat debasement, emphasizing the uncontrollable US debt and the government’s continuous printing of money leading to the devaluation of the dollar. He warns that the dollar’s decline is inevitable and advises people to invest in Bitcoin as a better alternative. The approval of spot Bitcoin ETFs has been a significant milestone, making it easier for institutions to invest in Bitcoin without the complexity of direct ownership. Belshe predicts that institutional interest in these ETFs will increase, leading to substantial capital inflows.
In addition to Bitcoin, Belshe discusses the future demand for spot Bitcoin and Ether ETFs. While Ethereum ETFs may take longer to gain approval, he believes they will eventually succeed and attract more institutional investors. Belshe also touches upon the macroeconomic and political influences shaping the cryptocurrency market, citing the US’s foreign policy and sanctions as driving global entities to seek alternatives to the dollar, such as alternative payment systems being developed by the BRICS nations.
Regarding the regulatory and political climate, Belshe expresses concerns about the politicization of financial regulations in the context of Bitcoin and cryptocurrencies. He believes that both major political parties should recognize the value of digital assets for innovation and economic stability. Belshe is optimistic about Ethereum’s potential as a smart contract platform but views it differently from Bitcoin, seeing it more as a platform for decentralized applications rather than a store of value. He also discusses the implications of staking rewards and the potential emergence of two classes of Ether with different valuations.
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