When BTC hits $1 million, you won’t be so happy when it happens, say Samson Mow.
The promoter of bitcoin adoption in the world believes that if the price of the digital currency rises to $1 million, every plan would derail. Mow believes that if the price of Bitcoin rises rapidly, many will suffer levels of maximum pain.
- With a rapid climb towards $1 million, no one will escape from high network fees.
- El Salvador and other countries would lose the opportunity to issue bitcoin bonds.
Samson Mow, CEO of Jan3, a company promoting Bitcoin adoption worldwide, published an analysis in X in which he raises the importance of controlled growth and gradual acceptance of the digital currency globally. They want to ensure the stability of the ecosystem and lessening the economic problems that plague a high percentage of humanity.
Cheap electronic cash?
Mow believes that a rapid rise in the price of Bitcoin will compromise the growth opportunities offered by electronic cash today. “It would derail everything,” he noted just hours before the U.S. Securities and Exchange Commission (SEC) deadline to grant clearance, or not, to spot bitcoin ETFs. From Mow’s perspective, the ideal scenario would be at least a couple of years before the price of the pioneering cryptocurrency skyrockets.
For him, getting to $1 million quickly “means we’re out of time.” As a company promoting the global adoption of Bitcoin, he believes that Jan3 will be overwhelmed by the sudden increase in demand and, therefore, will not meet all the requirements of the countries interested in incorporating the digital currency invented by Satoshi Nakamoto. Overall, Mow predicts a challenging scenario if the price of Bitcoin rises after ETFs are approved. That would be a tipping point where almost all ecosystem users would suffer “maximum pain.”
For example, he believes that no one would escape high transaction fees, even through the Lightning network that allows faster and cheaper payments with BTC.
Here’s why we’re going to $1M #Bitcoin in DAYS to WEEKS: it’s MAX PAIN pain for the most people.— Samson Mow (@Excellion) January 9, 2024
Bitcoin has a way of doing what we least expect & in the most disruptive way. For example, at JAN3 we have many plans & meetings set for 2024. $1M BTC would derail everything.
“The main problem with Lightning is that its design assumes the interaction with the main chain under the assumption that rates would be “cheap” (potentially with larger blocks in the future). But it falls apart when rates are not cheap. All current Lightning channels could become useless if on-chain fees were high enough because a single payment would require too many reservations.”Samson Mow, CEO of Jan3.
“Bitcoin at $1 million will cause maximum pain for most”: Samson Mow
Samson Mow forecasts other possible negative consequences of a rapid rise in the price of Bitcoin. Among them, he mentions that El Salvador and other countries will lose the opportunity they had to issue bonds based on the digital currency price. However, it is striking that he does not references the profits that El Salvador would realize with the bitcoins it holds in the event of an extraordinary bullish rally.
On the other hand, Mow is perhaps pessimistic in the extreme, adding that with bitcoin’s price rising by more than 2,000%, it would mean that 8 billion people would miss out on the most major opportunity of their lives to adopt the digital currency. Had they done so in time, “it would have made a significant economic difference. Now they can only work to earn BTC. I think this is the biggest maximum pain,” he said.
Given this, Jan3’s CEO invites us to plan for what is happening: the imminent approval of bitcoin ETFs, the celebration of halving this year, increased adoption by nation-states, and other elements that indicate that this year and next will be full of opportunity for the ecosystem.