Posted 4 months ago | by @devadmin
Kraken’s Bitcoin strategist Pierre Rochard said that he believes BTC will see an explosion of corporate interest in 2021 predicting 50% of the top 500 companies will own Bitcoin by the end of next year.
In Kraken’s 2021 market outlook webinar this week, the long time Bitcoin enthusiast predicted that 50% of the top 500 companies in the world will hold Bitcoin in their portfolios by the start of 2022. That means that Rochard expects 250 companies to purchase Bitcoin and hold the number one digital asset by the end of next year.
Kraken's 2021 Crypto Market Outlook https://t.co/3GSqOZjAXR
— Kraken Exchange (@krakenfx) December 17, 2020
“My boldest prediction is that if we take the S&P 500, the world’s largest corporations, I think that by the end of 2021, more than half of them will have Bitcoin on their balance sheet, and I think that will be driven by simple economics, which is that issuing shares to buy Bitcoin causes your stock price to go up more than the dilution,” Rochard said during the webinar.
“And so because that is the case – we have market data showing this – we’re going to see a huge amount of corporate adoption of Bitcoin, and we’ll even see like what [MicroStrategy CEO] Michael Saylor is doing, corporations issuing large quantities of bonds, fixed-income instruments – whether they’re convertible or whatever – in order to just bulk buy Bitcoin.” he added.
Rochard further elaborated in an interview with Real Vision stating he foresees people beginning to refuse fiat payments for Bitcoin.
“So the way the sound money drives out a bad money is what’s called Thiers’ law. And Thiers’ law is actually the inverse of Gresham’s law. And Thiers’ law, really the practical implication of it is that eventually, the recipient of the payment – not the sender, the recipient of it – is going to refuse fiat.
They’re going to say, I don’t want USD. I want Bitcoin. Because if you give me USD, I know that it’s going to lose its value very quickly. And so I want you to pay me in Bitcoin. And so, really, it doesn’t actually matter whether the sender is sending them USD or Bitcoin.”
As more and more companies like MicroStrategy and Square Inc convert their USD earnings into Bitcoin Rochard’s believes that there will be a larger industry adoption of the top cryptocurrency in businesses.
“So I think that as more and more companies join the Bitcoin standard and start using Bitcoin as their treasury reserve asset, then they will want to get paid in Bitcoin so that they avoid the transaction costs of having to convert USD into Bitcoin. And so really, this is why people say we have to have store of value adoption before we have medium of exchange adoption.”
If what Rochard’s predicts is to come to pass, then as the host of the Keiser Report and Orange Pill Max Keiser may be right that big businesses will begin purchasing Bitcoin direct from miners locking out retail investors. As a result of the scarcity Keiser said he expects Bitcoin to sky rocket with a prediction as high as $1 million per BTC, as Bitboy Crypto previously reported.
Bitcoin is currently trading at [FIAT: $23,825.33] UP +4.9% in the last 24 hours according to Coingecko at the time of this report.