David Tamil of Pro Chain Capital fame believes that bitcoin is going to reach $50K by the end of the year. He also thinks that home and real estate prices are going to come crashing down.
Will Real Estate Be in a Weaker State?
The latter shouldn’t be surprising to anyone. After all, Joe Biden – the present commander-in-chief – has done nothing of value since entering the White House and has instilled extremely weak economic policies and signed his name to multiple trillion-dollar spending bills that have caused America to fall to its knees repeatedly.
As a result, the Fed has consistently been forced to hike rates, thus causing things like real estate and cars to suddenly be inaccessible to citizens across all 50 states. When things are not affordable, the companies that produce these “things” are forced to take immediate action so they can garner the funds they need to stay afloat. One of the biggest actions, often, is lowering prices.
Think about it… If nobody’s buying your product, wouldn’t you first try lowering the price to see if that gets customers in the door? You can bet this is going to happen with real estate, as home sellers will need some way to contend with today’s out-of-control interest rates.
But while this may be the poor end of the stick, the good end – in his opinion – is that bitcoin will be on the rise, largely because many people are not viewing former investment opportunities in the same light.
While real estate has always been considered a solid way to become rich and stay wealthy in this country, if homes aren’t accessible or are more expensive than normal, those looking to invest will need new ways of stabilizing their money, and BTC – which has currently been on a bull run and has taken on a stronger “safe haven” status – may seem like a solid alternative. Tamil, in an interview, stated:
It is going to crush some very interest-rate sensitive industries such as real estate. I think we’re going to see a multi-year, maybe decade-long fallout, first on commercial, and then we will eventually get to housing.
For bitcoin to shoot up to $50K by the end of 2023, it would need to experience a price spike of more than 65 percent, and at this stage, it only has about four months to do so. Still, as we’ve seen in the world of bitcoin, practically anything is possible.
BlackRock Could Help
Tamil further commented that companies like BlackRock – which currently has a bitcoin spot ETF application circulating – will likely help the asset along and assist in it reaching the stated price. He mentioned:
This is going to be a tectonic shift for the use of cryptocurrencies to go ahead and represent ownership of assets.
