The collapse of several centralized financial institutions such as FTX, Credit Suisse, First Republic Bank, Silvergate Capital, and Signature Bank has resulted in investors seeking out more risky assets such as Bitcoin and Gold. The recent banking crisis has been compared to the 2008 financial extremity by tech billionaire Elon Musk. The 2008 financial crisis, which gave birth to Bitcoin in 2009, was preceded by the collapse of Lehman Brothers Inc., which had been operational for 158 years.
With the US Federal Reserve printing massive amounts of dollars to save the collapsing banking industry, Bitcoin prices are expected to increase significantly in the coming years. In addition, more countries are expected to adopt Bitcoin as a deflationary asset, if not legal tender.
Speaking on CNBC's Power Lunch with Kelly Evans, Strike CEO Jack Mallers discussed the role of Bitcoin in the ongoing banking crisis. Mallers is confident that Bitcoin's price will reach $1 million, driven by global hyperinflation.
Mallers believes that the Fed has tarnished its name by printing more money to save the banking industry, despite claims of reducing inflation to 2%. As such, Mallers expects tomorrow's FOMC statement on the interest rate to increase the demand for Bitcoin, pushing its prices even higher.
Mallers also reiterated the fact that there would only be 21 million Bitcoin units, despite the increase in demand. He criticized the altcoin industry for being centralized, with founders holding massive coins at the expense of the secondary market. Therefore, Mallers believes that altcoins are suitable for speculation and should ultimately be used to accumulate more Bitcoins.
"My overall opinion is that the name of the game is to accumulate as much Bitcoin as possible. Alts are interesting but a lot more speculative. I use them to accumulate more Bitcoin," said Mallers.
In summary, the recent collapse of centralized financial institutions has increased investors' appetite for risky assets like Bitcoin and Gold. The ongoing banking crisis has led to the printing of massive amounts of dollars, which is expected to drive Bitcoin prices higher in the coming years. Mallers is confident that Bitcoin's price will reach $1 million, driven by global hyperinflation, and encourages investors to accumulate as much Bitcoin as possible.