Samson Mow, the CEO and Bitcoin advocate, sparked a heated debate in the BTC community by making a bold prediction that the value of Bitcoin could potentially reach $1 million. Mow, who played a significant role in the adoption of Bitcoin at the national level in El Salvador, explained his beliefs on why Bitcoin will reach $1 million.
To support his prediction, Mow examined the historical growth of Bitcoin. He highlighted the rapid rise of Bitcoin from $1,000 to $20,000 in approximately nine months in 2017, drawing parallels with previous turning points.
Bitcoin analyst Bit Paine supported Mow’s prediction with a mathematical analysis of Bitcoin’s price increase rate. Taking into account fundamental factors such as supply and demand, Paine evaluated the potential sale of long-held Bitcoin based on new supply and HODL Waves.
Paine predicted that, similar to previous cycles, around 15-20% of the old circulating supply could be sold. If 20% of the old BTC is sold within the next four years, it would amount to approximately 3.8 million BTC.
Paine identified two major potential sources of capital for Bitcoin to reach $1 million. Firstly, referring to retirement savings in the United States, he stated that a modest reallocation of 5% to Bitcoin could bring in around $1.75 trillion. Secondly, by evaluating the treasury holdings of US companies, he estimated that a 10% investment in Bitcoin could contribute an additional $100 billion.