Kraken is an American cryptocurrency exchange and bank founded by Jesse Powell in 2011. It is one of the few crypto exchange platforms that provide cryptocurrency-to-fiat money trading. Dan Held- the head of growth at Kraken, made headlines in the crypto community today due to his explosive future broadcast for Bitcoin market trends. According to him, Bitcoin has entered a supercycle that would break the mark of $1 million evaluation for the flagship cryptocurrency.
A supercycle or Kondratiev wave is a long-term economic cycle for commodity prices. This long-term wave is believed to be spear-headed by technological innovation. The ultimate end product of the ‘K-wave’ is prosperity alternation by invoking economic decline. According to his estimations, the current market cycle of Bitcoin is different from the previous ones due to the on-going pandemic, breaking down of major financial institutions, and aftermath of dollar devaluation due to money printing.
The Dan forecast about the BTC is not done yet. According to his calculations, the current state of the market has turned a highly improbable fertile market for BTC into reality. Held thinks that the present standing of the economy is a one-in-a-hundred-year opportunity to produce the perfect crypto bull market. Held sees Bitcoin as the digital gold and is assured that it would become big enough to undermine central governments’ authority and status.
Such a scenario would draw a rift between the central government and BTC. The crypto markets might have to face backlash and regulatory restrictions from the state’s administrative and legislative authorities. Held appreciated the design and structure of Bitcoin by Satoshi. He added to his broadcast that Bitcoin is the only cryptocurrency that is designed to sustain the pressure of inevitable “crypto mass extinction event in the future.” In his opinion, other stablecoins like altcoin would not be able to survive the crackdown as they are devaluating the censorship resistance and compromising on decentralization protocols to gain better momentum in the market.
Is Bitcoin a Ponzi scheme? Bitcoin Skeptic vs. Enthusiast in Debate
Some scholars and academics are debating on the status of BTC as a Ponzi scheme. As a dedicated Bitcoin enthusiast Kraken BTC strategists-Pierre Rochard has stepped forward to defend his position against the Bitcoin Skeptic, Jorge Stolfi. Stolfi has been trying to challenge the position of the flagship cryptocurrency as a holding asset class commodity.
According to Stolfi, Bitcoin should be classified under a Ponzi scheme since it does not generate any cash flow and the return from Bitcoin comes from the new investors who buy Bitcoin. However, Rochard rebutted his remarks by exclaiming that Bitcoin is simply a digital currency that is used for peer-to-peer exchange and is not supposed to create a cash flow by default. He further added that Bitcoin’s position as a commodity is confirmed as the investors are aware that it could be subject to losses, which denies the presence of a Ponzi scheme framework on the back of Bitcoin.