The managing partner of cryptocurrency hedge fund Morgan Creek Digital is not backing down on his big Bitcoin (BTC) prediction.
In a new Altcoin Daily interview, crypto trader Austin Arnold asks Mark Yusko if his prediction from last year that Bitcoin could hit $250,000 in half a decade still stands.
According to the hedge fund veteran, Bitcoin skyrocketing to $250,000 seems “easy” to him but notes that the “timing is harder.”
“I absolutely positively believe that Bitcoin is digital gold… I think it is a better form of value storage. I absolutely believe that. Gold – $10 trillion above ground. Half of it [is] in jewelry and chalices – that doesn’t count. The monetary value of gold [is] about $5 trillion. So $5 trillion from [BTC’s market cap of] $400 billion today, that’s [a] 10x. [A] 10x from here at $20,000 is $200,000. Round it, my numbers are off a little bit, to that $250,000 number. Seems easy to me to get to $250,000 because you got a few lost or stolen coins. No problem.”
Yusko also says that another way to look at Bitcoin’s potential ascent to his massive price target is to take note of BTC’s historical performance each time it goes through a halving event.
“Every halving we had a zero – first halving was $10, second halving was $100, third halving was a $1,000 [and] fourth halving was $10,000, so that means that next halving is $100,000.”
The Morgan Creek Digital executive also points out Bitcoin’s exponential growth due to network adoption. Yusko mentions Metcalfe’s Law, which states that the value of a network is proportional to the number of its users.
“The idea of the network is the more participants, the better. So the longer we go, the more network we have, and the more exponential the growth. That’s why when you look at pictures of Bitcoin, it always looks like this: it goes way parabolic and then crash, and then parabolic and then crash. But if you zoom out, it actually looks like an S curve.
[The] first 10% happened over 10 years, the next 80% is going to happen over the next 10 years and the last 10% over the next 10 years. So it’s a 30-year trend, and that’s true of every technological innovation… The likelihood that this technology goes away: zero.”
At time of writing, Bitcoin is changing hands for $19,501. A move to Yusko’s price target suggests an upside potential of over 1,180% for BTC.
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Featured Image: Shutterstock/Alberto Andrei Rosu