Bitcoin might skyrocket to $500,000 because the United States will be pushed into a large-scale hash rate war by Iran and Venezuela who use the cryptocurrency in order to relieve their economies from international sanctions and restrictions.
This is the forecast of politics and economy analyst Max Kaiser in the latest episode of his TV show “Kaiser report”, titled “Hyperinflation Causes Hyperbitcoinization”.
With the Venezuelan government heavily invested in cryptocurrencies in the last few years, while battling crippling inflation, the US joining the race for Bitcoin dominance is not a matter of if, but rather when, Kaiser argues.
“Iran already got 3% of global hash rate, now I think Venezuela will get 3%–5% pretty quickly,” Kaiser noted. This will inevitably lead to Washington coming to the conclusion: “We’ve got to enter the 21st-century space race of mining Bitcoin”.
Washington will be looking to get an even bigger rate than its adversaries combined which will drive security up significantly, skyrocketing the price to $400,000, $500,000.
In a broader sense, the Bitcoin revolution represents the Reformation of modern times, which is opposed to the corruption of paper printing central banks, Kaiser thinks. He went further and equated Bitcoin with the Mona Lisa of the modern era – channeling the eyes of God, who tries to save mankind from central banking.
Venezuelan guest analyst and trader Alessandro Cecere also contributes to the discussion: “We already have 1-2% of the global hash rate… We trade with Russia, we trade with Iran in Bitcoins, we trade with Turkey in Bitcoins, we trade with Argentina, Mexico, Columbia and it’s just going to keep on growing… it’s about Bitcoin eating up all of the global financial markets via the depreciating currencies of the globe… and it’s not about the US dollar, the yuan or the yen, it’s about every single currency”.
“The global hash war has begun. You’ve got two countries – Venezuela and Iran – whose energy costs are cheap, so they are able to be competitive in that mining space… They are kicking back to the US and saying ‘Wait a minute, let’s take our cheap oil and mine the hardest currency that has been known in the history of mankind and we will beat you in the global currency game’”, Kaiser concluded.
