$1 Million Bitcoin Price Prediction Explained.

In a recent surprise statement, JAN3 CEO Samson Mou boldly predicted that the price of Bitcoin could rise to $1 million, which he suggested could happen “within days to weeks.”

This prediction is surprising but not unfounded. Mow noted that Bitcoin often defies expectations and causes disruption, especially when least expected.

Bitcoin price prediction: $1 million

The core of Mow's argument is the concept of “extreme pain” for the masses. According to Mow, the unpredictable nature of Bitcoin is its hallmark. This unexpected situation can cause the price of Bitcoin to increase rapidly, which will disrupt not only individual plans, but also entire economic systems.

For example, JAN3, under Mou's leadership, planned to board nation-states to enter the Bitcoin ecosystem. This is a process where such sudden price increases can have a significant impact.

Mow also discussed the Plan B stock-to-flow (S2F) model, a popular method for predicting the price of Bitcoin, which breaks down in such situations. Additionally, the Lightning Network, designed to enable cheap and fast Bitcoin transactions, could become operational if the price of Bitcoin rises to $1 million.

The assumption of “cheap” transaction fees no longer holds, rendering current lightning channels useless.

“The main problem with Lightning is that it is designed to interact with the main chain under the assumption that payments are ‘cheap' (may have large blocks down the road). But it stops when payments are not cheap… and the problem is that payments are not cheap. Bitcoin transaction fees are in BTC and USD terms. They're going to be more spacious,” explained Mow.

One of the effects of the sudden price increase to $1 million is on countries like Microstrategy and El Salvador.

Microstrategy, led by Michael Saylor, has found their goal of owning 1% of the Bitcoin supply difficult. This is despite the company's huge investment. Meanwhile, El Salvador, which has taken significant steps to accept bitcoin, will miss out on the opportunity to issue bitcoin bonds and build their reserves at lower prices.

BTC skeptics will be in great pain

Moe joked that this would lead to job losses for prominent economists and central bankers such as Christine Lagarde and Jerome Powell, as the financial world quickly shifts to accommodate Bitcoin. This hyperbitcoinization comes with its share of problems, forcing the legacy financial system to rapidly reorganize around bitcoin.

Interestingly, Mow mentioned the psychological effect on gold advocates like Peter Schiff, who have long opposed Bitcoin. A quick jump to $1 million will be a tough pill to swallow for them, especially with gold prices slowing.

“Lagarde, Powell, and many prominent economists will lose their jobs… [And] “Peter Schiff and Gold Bugs will suffer from a collective mental breakdown after Bitcoin soared to $1 million,” added Mou.

In a broader context, Mau's prediction signaled a missed opportunity for the world's population. A quick climb to $1 million means that many people have missed their chance to invest in Bitcoin. Instead, earning Bitcoin at work will be the only viable option left for many.

Read more: Who will have the most Bitcoins in 2024?

Mow concluded by stressing that bitcoin is more likely to make unexpected moves that would cause “significant pain” to a large number of people. According to him, spot Bitcoin ETF approvals, the upcoming Bitcoin halving, nation-state adoption, renewed quantitative easing and the Veblen effect have yet to be reflected in Bitcoin's price.

While Mou's prediction may seem far-fetched to some, it's a reminder of Bitcoin's inherent unpredictability and potential for disruption.

Former Coinbase CTO Balaji Srinivasan made headlines in March 2023 with his predictions about the coming crisis. He pointed out that this crisis will lead to the destruction of the US dollar and eventually to an area of ​​high inflation. Such a scenario, Srinivasan predicted, would push Bitcoin's price to an unprecedented $1 million.