Guggenheim Partners’ global chief investment officer Scott Minerd is turning in a massive Bitcoin price prediction, estimating that the flagship cryptocurrency could appreciate by nearly 20 times its current price.
In a CNN interview, Minerd argues that the flagship crypto asset could reach up to $600,000 if Bitcoin’s market cap can match that of gold’s.
“And if you consider the supply of Bitcoin relative let’s say to the supply of gold in the world, and what the total value of gold is, if Bitcoin were to go to those kinds of numbers you would be talking about $400,000 to $600,000 per Bitcoin.”
Guggenheim’s global CIO says that figure is not a prediction, but is a possible indication of where the top crypto asset’s fair value may be. He says Bitcoin’s recent rally that took the asset above the $40,000 level is likely in part due to short-term speculation.
“But then, when you consider that within a course of a month we went from $20,000 to $40,000 on Bitcoin, that smacks of short-term speculation…
Now the air is coming out of that speculative run and so the money is migrating into other places… So you know, Bitcoin’s had a lot of times where it’s had setbacks of 50% from its highest. I wouldn’t be surprised to see that happen again.”
The Guggenheim global CIO adds that institutional investors might not be showing up enough to save the day.
“And you know, as I indicated recently, I don’t really see the institutional support today which is just coming online from the likes of people like BlackRock and Guggenheim and other large institutional investors being big enough to support the valuation at its current levels.”
Despite short-term volatile price movements, Minerd anticipates that cryptocurrencies are here to stay as they gain wide-scale adoption.
“I think that cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Digital Storm