By
Temitope Olatunji
April 24th, 2024
According to the entrepreneur, bitcoin will keep rising in the upcoming years, leading to the growth of all cryptocurrency-related valuations.
Jeremy Allaire, the co-founder and CEO of the fintech startup Circle, is being very optimistic about the future of bitcoin, even despite the recent downturn in the cryptocurrency’s value.
In an interview to CNBC, the entrepreneur said he believes bitcoin will skyrocket in the next three years, eventually driving all cryptocurrency valuations. While Allaire was reluctant to make specific predictions, he said the price of bitcoin will be much higher than it is now.
“I don’t make significant price predictions,” he told Squawk Box host Andrew Ross Sorkin. “But it’s certainly going to be worth a great deal more than it’s worth today.”
According to Allaire, the fact that the digital currency is used by so many people worldwide explains his positive predictions and is one of the reasons to think that Bitcoin and Ethereum are oversold. Moreover, the fundamentals of digital currencies have not changed, what will continue to attract investors.
As Allaire noted, bitcoin will play a “very significant role” as a store of value, despite its current price changes. Bitcoin, he said, is unique when it comes to scalability and safety measures.
“The key thing with bitcoin is [that] it’s unique in its security and scale. And as an idea that we need a scarce [and] non-sovereign store of value that individuals can hold, and hold in a protected fashion, [Bitcoin] is attractive all around the world.”
The Future of the Crypto Market
Allaire stated that the success of one digital currency doesn’t mean the death of the other tokens. He doesn’t think the cryptocurrency market will end up being a winner. Instead, Allaire believes there will be millions of crypto assets on the market, like securities, utility tokens, and commodities.
“I do not think it’s going to be a winner-take-all [scenario],” Allaire explained. “We have a phrase: the Tokenization of Everything. We think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”
Bitcoin Price Predictions
Earlier this week, the co-founder of Fundstrat Global Advisor, Tom Lee, claimed that bitcoin is now underestimated and it should be worth more than $13,000. Besides, he thinks the cryptocurrency could achieve $150,000 per coin if the number of wallet addresses reached 315 million.
Earlier this year, he already predicted that bitcoin would reach $25,000 this year, but then lowered his forecast, saying the cryptocurrency would be worth $22,000.
A former partner at Goldman Sachs, Mike Novogratz, shares positive opinions as well. The billionaire, who is an active bitcoin supporter, said he is confident the cryptocurrency will make a comeback, despite a fall of over 80% from its all-time high.
Another billionaire and VC investor Jim Breyer claims the technology is too big to be dismissed, noting that the current bearish trend on the crypto market will soon come to an end. Similarly, investor Tim Draper predicts the price of bitcoin will continue growing in the years to come.