Mike Belshe, CEO of BitGo, shares his insights on the future of Bitcoin and the driving forces behind the expected price increase to $125,000.
Kitco News conducted an insightful interview with Mike Belshe, CEO of BitGo. Belshe provided intriguing predictions regarding Bitcoin's price development, institutional adoption, and the macroeconomic factors influencing the cryptocurrency market.
Bitcoin Price Forecast and Institutional Adoption
According to Belshe, the price of Bitcoin will exceed the $125,000 mark by the end of 2024. He believes this surge will be driven by a combination of macroeconomic factors and growing demand from institutional investors. Despite initial volatility following the approval of spot Bitcoin ETFs, institutional involvement is gradually gaining momentum.
Currently, only about 5% of institutional capital is invested in Bitcoin, according to Belshe. He attributes this slow adoption to the cautious and methodical approach of large institutions, which often involve extensive committees and evaluation processes. Once these processes are completed, more institutional money is expected to flow into Bitcoin, significantly driving up its price.
Macroeconomic Factors and Bitcoin as a Hedge
Belshe emphasizes the role of fiat currency devaluation as a primary reason for Bitcoin's existence and its continued performance as a top asset. The uncontrollable US debt and continuous money printing lead to a devaluation of the dollar. Belshe states, "Your dollar is sinking. My dollar is sinking. Away from the dollar." He views Bitcoin as a hedge against this devaluation and predicts that Bitcoin's value will continue to rise as more people and institutions seek alternatives to fiat currencies.
The approval of spot Bitcoin ETFs was a significant milestone. These ETFs make it easier for institutions to invest in Bitcoin without dealing with the complexities of direct ownership. Belshe notes that initial demand for these ETFs was mainly driven by retail investors, but institutional interest is now increasing. He expects this trend to accelerate, leading to substantial inflows of institutional capital into Bitcoin.
Political Influences and Global Developments
Belshe explains that US foreign policy and sanctions controls are prompting global companies to look for alternatives to the dollar. BRICS countries are working on alternative payment systems, which could weaken the dollar's dominance. Additionally, digital technologies are enabling seamless cross-border payments, reducing the need for traditional financial intermediaries.
Belshe also expresses concerns about the politicization of financial regulation, particularly regarding Bitcoin and cryptocurrencies. He points out that political motives have influenced regulatory decisions, such as the sudden approval of spot Ether ETFs. He believes that both major political parties should recognize the value of Bitcoin and digital assets for innovation and economic stability.
