The global head of investment at the $270-billion asset management giant Guggenheim Investments says Bitcoin should be valued at $400,000.
In a new interview on Bloomberg TV, Scott Minerd says the firm’s fundamental analysis shows the leading cryptocurrency is massively undervalued.
“We made the decision to start allocating Bitcoin when Bitcoin was at $10,000. It’s a little more challenging with the current price closer to $20,000.
Amazing over a short period of time how big of a run up we’ve had. But having said that, our fundamental work shows that Bitcoin should be worth about $400,000…
We’re going to monitor the market and see how trading goes but ultimately we want to buy it.”
Minerd points to BTC’s total supply cap of 21 million coins, the fact that it’s a purely internet-based monetary payments network and its ability to store value as core reasons for the analysis.
“It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP.
Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
Guggenheim Investments recently announced that it’s preparing to invest as much as half a billion dollars into BTC through the Grayscale Bitcoin Trust (GBTC).
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