Dan Held Of Kraken Says BTC Could Be In Early Days Of Cycle To $1M

Dan Held of Kraken said that BTC could be in the early days of the cycle that will lead the number one cryptocurrency towards the $1 million cycle. The crypto veteran analyzed the success BTC had and its rapid price growth as well which is why he thinks that the upcoming months will be interesting to see in regards to Bitcoin’s price so let’s read more in today’s Bitcoin news.

Dan Held of Kraken, pointed out that Bitcoin’s founder Satoshi Nakamoto believed that Bitcoin’s speculative nature will be the key feature that will help it grow and he even quoted Satoshi speaking of Bitcoin’s vision and connecting it to the one of a traditional marketing phenomenon known as the “viral feedback loop” as he said:

 “I feel like a lot of people are looking at the market and they’re going, ‘Oh well Bitcoin will just have a typical cycle.’ I think there’s a ton of different reasons why that won’t be the case… Satoshi actually hypothesizes that speculation would lead to Bitcoin’s inception and adoption…”

For example, Satoshi believes that as the number of users grows, the value per coin will increase. It has the potential for positive feedback as the users increase the value goes up which is likely to attract more users to take advantage of the increasing value. He also explained this before BTC was worth even a penny. In the traditional marketing sense, this is called a viral feedback loop which is when someone discovers a piece of content that is extremely interesting and you associate it with a  website so you visit the website and share it with your friends. He continued:

“Satoshi understood this and he brought this into money. He understood that he could create a viral feedback loop on just the price alone. As the price increases, people become more aware of it, and then other people buy in with that expectation of the price going higher and they tell their friends about it.”

Held believes that the COVID-19 pandemic provided the perfect circumstances for BTC to really show its value:

 “What’s really unique about this cycle though, and I’ve been around for all the other cycles… this one is very different. Never before has it had such strong fundamentals against a macro backdrop which highlights exactly why it’s needed… So Covid brought Bitcoin’s focus and value and made it really obvious for the world. And because of that, a new participant entered, the institutions… Institutions post-Covid were searching for a safe store of value. You’ve got $18 trillion of negatively yielding sovereign debt and Bitcoin offers such a greater value than gold… These institutions manage over a $100 trillion.”