Bitcoin continues its bull run. The coin is up more than 12 percent over the last week and is now tickling $16,000. According to the Big Mac Index, a Bitcoin will now buy as many as 6,3421.26 of the giant burgers. It’s even passed the monetary base of the Russian ruble, and is on its way towards beating Canada. That will happen when Bitcoin is worth $18,000. It’s almost there. The coin already has a market cap bigger than that of Bank of America (NYSE:BAC), Netflix (NASDAQ:NFLX), and Shopify (NYSE:SHOP). If it keeps rising, it will soon be in the top 20 assets by market cap, alongside Facebook (NASDAQ:FB), Tesla (NASDAQ:TSLA), and Apple (NASDAQ:AAPL). It’s no wonder that economists at the US Federal Reserve are looking harder at the value of CBDCs. They think that a central bank digital currency could be a useful way to deliver money directly to households.
Not everyone is so optimistic. Eric Wall, chief investment officer of crypto hedge fund Arcane Asset, is betting a million dollars that Bitcoin’s stock-to-flow model will be broken by 2025. By “broken” he means that Bitcoin won’t have reached 50 percent of its target range. In a tweet laying out the challenge, he tagged in PlanB, the creator of the model. PlanB had predicted a Bitcoin price of $100,000-$288,000 by December 2021. David Schwartz, CTO of Ripple, won’t be taking that bet. He says that he has already lost about $300,000 trading in tokens that turned out to be “completely worthless.”
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