This is when Bitcoin will hit $140k according to Alex Mashinsky, CEO of Celsius
(Kitco News) - Bitcoin, and Ethereum, have already put in their bottoms, according to Alex Mashinsky, CEO of Celsius Network, who just last week bought another $10 million of Bitcoin and Ethereum.
Mashinsky Tweeted about the purchase, and as of the date of the Tweet, November 27, Bitcoin was trading at a low of $53,000.
Mashinsky discusses with David Lin, anchor for Kitco News, his price projections for Bitcoin and Ethereum and his expectations for the next advancements in DeFi at the DCentral Conference in Miami.
While the Taproot upgrade, which makes several improvements on the Bitcoin protocol including enhanced user privacy, came out only a few weeks ago, it had limited effect on the price.
"I don't think that Bitcoin is driven by technological innovation. Bitcoin is driven, as a store of value, by supply and demand, by how many buyers and how many sellers, so it's driven by the state of trust in the community," he said.
On Ethereum, Mashinsky said that growth is faster than Bitcoin's.
"I believe that Ethereum is running faster because [Eth 2.0] is locking up more and more assets, so supply is being shrunk faster than on the Bitcoin network," he said.
While there is theoretically unlimited supply for Ethereum, that supply is being artificially kept low, Mashinsky noted.
"Eth has a 3% inflation but it also has a burn, so because of the burn, inflation is almost 0%. Bitcoin has 3% inflation, so it actually has 3% created every year. Ethereum, on top of it, has what's called Eth 2.0, meaning you can put Eth on a contract to earn yield, and when you lock it in, in you can't take it out, so every day more and more Eth are being taken off the market, plus you have the burn. That is creating artificially limited supply, meaning you need less buyers to push prices higher," he said.
For Mashinsky's price projections of Bitcoin and Ethereum, watch the video above.
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