Bitcoin Could Surpass $1 Million Due to AI Deflation

Renowned Bitcoin analyst Fred Krueger recently highlighted the potential long-term benefits of Bitcoin, predicting that the cryptocurrency could surpass $1 million in value. Krueger's analysis, shared on the social media platform X, focuses on the deflationary pressures that artificial intelligence (AI) could exert in a low-interest-rate environment, which he believes will significantly boost Bitcoin's value.

Krueger noted that while interest rate cuts might temporarily bolster the fiat money system, the long-term impact of AI-driven deflation could push Bitcoin's price to unprecedented heights. He specifically mentioned that reducing interest rates to 1% could provide the fiat system with a 10-year advantage. However, he anticipates that AI will create a strong deflationary effect within this period, potentially driving Bitcoin's price to exceed $400,000 or even $1 million.

Krueger's analysis also touched on the strategic advantages that companies holding Bitcoin on their balance sheets, such as MicroStrategy, RIOT, and MARA, will gain over their competitors. He argued that these companies are in a stronger position due to their Bitcoin-focused strategies and predicted that many more companies will follow suit in the next five years, further bolstering Bitcoin's market presence and value.

Krueger's predictions are based on his observation that Bitcoin follows a long-term "power law" curve, suggesting that its value will continue to rise exponentially over time. This perspective underscores the potential for significant growth in Bitcoin's price, driven by both technological advancements and strategic corporate investments.