There has been a bullish mood on the crypto market for some time now. Given the huge amounts of capital that institutional investors have invested in Bitcoin (BTC) in particular, cryptocurrencies appear capable of reaching unprecedented heights.
If it were up to Samson Mow, CEO of the technology company JAN3, we could expect a BTC price in the seven-figure range. Mow shared his expectations on the “What Bitcoin Did” podcast. According to him, we could see a $1 million prize this year or next.
The CEO’s forecast amounts to an increase in value of almost 1,300%. He bases his optimistic view on current market conditions. In his opinion, demand is extremely high, much greater than supply. Also because the upcoming halving will make Bitcoin even more scarce, Mow expects further upward pressure on the price.
Samson Mow also points out the significant demand coming from spot Bitcoin exchange-traded funds (ETFs). These US funds have absorbed around 22,000 worth of BTC over the past period.
Veblen effect on BTC price
Finally, Mow discusses the Veblen effect. This is a concept that states that when the price of a good increases, demand increases, resulting in an upward sloping demand curve.
JAN3 CEO says there will be a tipping point when Bitcoin’s value equals that of the entire gold market, which would mean a value of $450,000 and $500,000 for the digital currency. At this point, people will start thinking that the cryptocurrency is as valuable as gold, and Mow expects them to convert their money from gold to BTC.
Successful Lightning Network
Bitcoin’s recent success is also evident in the Lightning Network, a payment protocol built on the Bitcoin blockchain. Recent data from The Block showed significant capacity growth of 37%.
Ultimately, the network’s total capacity reached a new record of $325 million. At the same time, the data shows a slight 5% decline in capacity measured in Bitcoins.
