Bitcoin At $1 Million By 2020 Is Still Possible And Might Be A Discount Says James Altucher
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The Federal Reserve has poured unprecedented levels of stimulus into the U.S. economy to deal with the pandemic, and most experts agree that inflation is just around the corner. David Einhorn has positioned his Greenlight Capital to benefit from inflation when it arrives. Q2 2020 hedge fund letters, conferences and more SORRY! This content is Read More
Is bitcoin heading back to its highs and will it ever replace gold as the ultimate commodity. James welcome to the show.
Good to have you in studio. Yeah thanks for having me here. Talking all things today. Yes. Yes. By the way your voice was an octave higher when you started talking to that kind of banker voice. Yes. In the increased octave higher increases like ability octave lower increases trustworthiness. OK. So let me find a medium ground here. Well you’ve made me want to start high level when you’re serious that is a good tip. James thank you so much. You’re welcome. Welcome to the show. I can go right. That’s all right.
First time you’re on here. Let’s talk about the rally behind bitcoin. Everyone wants to know could we see those highs we once hit.
Sure. I mean there’s a short term story and a long term story the long term story I’ve described in a lot of places. August 2017 I described the long story on CNBC how crypto currencies solves in general many of the problems of paper currencies and fiat money which you’re familiar with the fact that there’s so many banks and fees and there’s so much potential for human error. When the Federal Reserve or the central bank prints more money there’s potential for forgery. There’s privacy issues. So crypto currency solves a lot of the problems of fiat money. And that Longstaff that long term story is still intact. So long term it’s just all crypto currencies that are that are safe and not scams are going to go up and again in a prior interview I mentioned I said ninety five percent of crypto currencies are scams. That was in August 2017 about 80 percent of cryptocurrency since then have gone to zero. So that’s been proven mostly correct in terms of a short term rally. You know there’s so many problems right now with Iran with China and these tariff wars that are happening people are getting hit with Brexit issues. So people are getting afraid of the currencies that they own.
So there’s kind of a flight into other to other types of currencies like Bitcoin or like gold. So gold had had a mini rise but bitcoin is gone up quite a bit it’s gone from like six thousand nine thousand during this time. And I think there’s more to it it’s it’s it’s a flight to safety Bitcoin. And also there’s a lot of you know there’s a lot of companies now announced they were going to accepting and so Whole Foods is accepting it. You know many companies are accepting it. Salesforce.com just announced they’re using. Block chain technology.
While a lot of people would say that this this run up is thanks to the institutional players coming on board a U.S. online brokerages that are looking to offer Bitcoin in 2019. So do you agree with that statement that that’s yeah it’s here.
That’s certainly part of it. Think about a year ago the FCC started saying no no no. You know we need to look at this. I thought that was a great sign. Now Bitcoin collapsed after that. But you want your regulators to kick out all the scams. You want some cleansing of any sort of financial innovation. So now finally they’re starting to get ready to announce ETF. Fidelity is going to start having an exchange for it right.
And that’s where you have said that you actually see regulation as a good thing. Yeah. KLEIN But let’s talk about the 20 70 interview you did. You also mentioned that you wouldn’t be surprised if Bitcoin could possibly go to a million dollars Yeah by 2020.
Well also I’ll explain the math so so you know if if crypto currencies or let’s say Bitcoin if Bitcoin ends up replacing paper currency and it solves so many problems of paper currency it should partially or completely replace paper currency in the long run. How much paper currency is out there. It’s about two hundred trillion dollars worth of paper currency is in the world and there’s only about two hundred billion dollars of cryptocurrency. So that’s one hundred thousand percent from here. You know that could give bitcoin a price of I don’t know eight million dollars so one million dollars is even a discount to where a Bitcoin could eventually go. Now when it actually gets there who knows. It could be soon. It could be later it could be you know. But but the general direction has been up. So you’re sticking to that call. Well since I’ve made that call. Bitcoins up something like 150 percent. So as long as the direction is good and you’re making money nobody should complain. Will it hit a million dollars in 2020 maybe. Will it be 20 21 20 22. Who knows at some point some country their currency is going to collapse who knows which country will be Argentina Iran any country. Many countries in South America are potential some currency will collapse. The population of that country will say let’s all move to bitcoin.