(Kitco News) - Bitcoin is experiencing not just a price rally, but a revolution, according to Mark Moss, host of the Mark Moss Show, as the digital asset hit new all-time highs above $94,000.
In an interview with Kitco News, Moss argued that the U.S. government's increasing debt levels are pushing asset prices up, with Bitcoin being one of the few assets that can consistently outpace the rate of monetary inflation.
"Most people were expecting a crash," Moss told Kitco News anchor Jeremy Szafron. "But there's a reverse crash where prices go up so fast that I also can't afford the same quality of life. The outcome is the same as the crash – 'I can't afford the same quality of life.' But instead of crashing down, it crashes up, and that is what's happening."
Moss pointed out that investors need to beat not the inflation rate but the real rate of debasement, which is around 10%, to succeed in this environment. "When the S&P 500 is adjusted for M2 money supply, it hasn't made a new all-time high since 2000," he said.
'Sovereign FOMO' in Bitcoin, why $1 million price tag is in play
Moss, a seasoned Bitcoin and macro-focused investor, believes that with Trump branding himself as the 'Bitcoin President,' the U.S. is likely to adopt a strategic Bitcoin reserve, triggering a game theory scenario that could see other nations follow suit.
"What I'm talking about is sovereign FOMO [fear of missing out],” he said. “Senator Lummis from Wyoming has proposed a bill to have a strategic Bitcoin reserve. The plan is to add 200,000 Bitcoins annually to reach 1 million Bitcoins on the books. [Under Trump], this is very likely to happen."
If the U.S. does this, G7 and G20 countries will be influenced. "Other nations are starting to pay attention to this. They are starting to buy and that's putting a lot of pressure onto the [Bitcoin] price," Moss noted.
In terms of long-term prices, "by 2030, a million-dollar Bitcoin is at play," Moss said, stating that this prediction is based on a mathematical equation that considers the expansion of the monetary supply and Bitcoin's historical sensitivity to such expansions. To understand how he gets to that number, watch the video above.
"Asset prices are going up with the expansion of the monetary supply. The government has already told us how much the monetary supply is going to expand by 2030. The CBO [Congressional Budget Office] of the U.S. puts that number out," Moss added.
Moss also believes that smaller nations are already quietly accumulating Bitcoin. "There has to be," he said. "I have quite a big reach and I hear a lot of rumbling of small different countries doing it."
What about gold?
With massive debt levels and rising interest rate expenses, the U.S. could be forced into "something drastic" to keep the U.S. dollar strong, Moss added.
"That could be either letting gold get revalued up to some market value, maybe that's $10,000 an ounce or $20,000 an ounce, or moving to a Bitcoin standard. Something has to happen in order to shore up the currency. Otherwise, China's going to do it. And this is the game theory," he said.
For insights on Moss' game theory, watch the video above.
While Moss is bullish on gold, he believes that Bitcoin's rise represents a true "revolution" due to its potential to reshape the global financial system. "Bitcoin gives billions of people a way to own property," he stated.
Moss also emphasizes investing in "rare assets" such as trophy real estate. For his full list, watch the video above.
