A well-known economist does not believe in the growth of bitcoin to $1 million in three months

Economist and author of the cult book The Bitcoin Standard, Seyfedin Ammous, did not support the forecast that the first cryptocurrency would reach a price of $1 million in the next three months.

I feel dirty sounding bearish on bitcoin, but I do not think bitcoin will hit $1m in 90 days & and I do not think the dollar can possibly hyperinflate this quickly.

My reasoning follows https://t.co/y5g9CK2qxA

— Saifedean Ammous (@saifedean) March 22, 2023

In mid-March, former a16z partner and Coinbase CTO Balaji Srinivasan made a $2 million bet that digital gold would skyrocket to $1 million within 90 days.

Ammous stated that he feels “disgustingly bearish” about Bitcoin, but does not believe in such a move for the cryptocurrency in this particular case.

Srinivasan’s main argument was the impending banking crisis, which, in his opinion, will be much deeper than in 2008. In his opinion, this will cause hyperinflation of the leading fiat currencies, primarily the dollar.

However, Ammous noted that the collapse of banks is a deflationary event, as it reduces the money supply.

Analyzing Srinivasan’s arguments, the economist further pointed out that even if central banks start printing unsecured money to pay off the crisis, this will not cause hyperinflation. For bitcoin to reach $1 million within the specified period, the dollar must depreciate by half in a day, which Ammus called unrealistic.

Even in countries with “decrepit” monetary and financial institutions, achieving such rates of devaluation would require many months, if not years, the economist stressed.

Ammus also recalled that the daily production of bitcoin in the current 4-year cycle is about 900 BTC. This means that in order to reach and maintain a price of $1 million, a daily influx of $900 million of “new money” into cryptocurrency is needed.

According to him, Srinivasan is right about the long-term prospects of digital gold. However, the process of its adoption is “not quick, and not easy.” Ammus likened it to “moving from Windows to Linux”.

Earlier, specialists from the investment company ARK Invest predicted that bitcoin quotes will exceed $1 million by 2030.