In the newest episode On Peter McCormack’s What Bitcoin Did podcast, Strike CEO Jack Mallers made a stunning prediction for the price of Bitcoin. Mallers speculated that BTC could reach a valuation of $250,000 to $1 million in the current economic cycle. Mallers based his prediction on the broader context of global economic practices and central bank policies, emphasizing the unprecedented nature of today’s financial challenges and opportunities.

Why Bitcoin Is Ready to Hit $1 Million

Mallers highlighted the global debt-to-GDP ratio, which has risen more than 300%, as a critical indicator of economic imbalance. “Global debt tells you how much time and energy the human population and its future have been borrowed,” Mallers explained.

He argues that this disproportionate ratio signals that governments are borrowing future resources at a huge rate without a feasible repayment plan. This practice, he suggests, is akin to borrowing from future generations, reducing their potential quality of life and economic freedom.

“When you look at global debt, you can see how much time and energy has been borrowed from the human population and its future. Then, if you look at growth, which is what that metric tells us, […] “They lent us a lot of our future, a lot of our time and energy, with no way of paying it back,” Mallers noted.

CEO Strike fears that this could lead to sedate economic and social challenges, especially as governments struggle to manage these debts without resorting to measures such as currency depreciation. Currency depreciation, or a fall in the value of money caused by an boost in the money supply, is seen by Mallers as a likely government response to unsustainable levels of debt that could erode wealth and savings at an individual level.

“I think everyone is speculating that devaluing the currency is the way out for the government. You can steal time and energy from everyone living,” Mallers argues.

In this context, Mallers presents Bitcoin as a key tool for financial autonomy. By converting their wealth into Bitcoin, individuals can opt out of government mismanagement and protect their assets from inflation and potential currency devaluation. He emphasizes that Bitcoin’s fixed supply—restricted to 21 million coins—makes it immune to the inflationary tactics that governments can employ, unlike fiat currencies, which can be printed at will.

Mallers is particularly critical of the practices of central banks, especially their manipulation of economic cycles through market interventions. He argued that these interventions prevented the necessary economic adjustments and purging of inefficiencies that are necessary for vigorous economic dynamics. Such actions inhibited the natural entropy of economic systems, leading to artificially stable but fundamentally vulnerable markets.

“I went on record saying that I think Bitcoin will hit $250,000 to $1 million long before Trump or any of these rumors or anything else that this is based on, we will probably see the biggest bull market for assets in the history of bull markets. Why? Because central banks have gradually fixed the prices of everything when something goes wrong. They don’t let the boom-and-bust cycle end,” Mallers predicts.

The central point of his critique is the role of central banks in the bond market. Unlike other markets, such as housing and stocks, which have seen significant interventions to maintain stability, the bond market remains less protected, according to Mallers. This market is crucial because it underpins much of the global financial system, including the strategies governments operate to manage public finances.

Mallers predicts a scenario in which central banks may soon be unable to maintain control over the bond market without resorting to extreme measures, such as massive money printing. He predicts that such actions will likely lead to asset price inflation unlike any previous market cycle. Mallers predicts:

“This is a cycle where central banks are trying to price the bond market. The amount of money being printed is going to be astronomical, you’re going to get 2, 3, 4 or 5 COVIDs worth of money being printed and I think that’s going to send assets astronomically. Gold prices are going to be high, real estate, stocks. Okay, and then Bitcoin is the only real durable asset that we’ve ever had, so Bitcoin is going to outperform everything by orders of magnitude.”

At the time of going to press, the BTC price was $62,870.

Featured image created with DALL.E, chart from TradingView.com