Photographer: Patrick T. Fallon / Bloomberg
Photographer: Patrick T. Fallon / Bloomberg
As Bitcoin rises to all-time highs, Scott Minerd of Guggenheim Investments believes the fair value of the world’s largest cryptocurrency still has a long way to go.
The scarcity of Bitcoin combined with the Federal Reserve’s “unbridled money printing” means the digital token should go up to about $ 400,000, Minerd, the firm’s chief investment officer, said in an interview. His comments came the same day Bitcoin defaulted on $ 20,000 for the first time, which increased in 2020 to 190%.
“Our core work shows that Bitcoin should be worth about $ 400,000,” Minerd told Bloomberg Television on Wednesday. “It’s based on scarcity and relative valuation, such as gold as a percentage of GDP. So you know, Bitcoin has a lot of attributes of gold, and at the same time it has an unusual value in terms of transactions ”.
It’s an argument similar to what some of Bitcoin’s most prominent sponsors often offer, including famed investor Paul Tudor Jones, who said earlier this year that he had been buy Bitcoin as hedging against what it expects to be faster inflation after years of quietly rising consumer prices. Similarly, Mike Novogratz of Galaxy Digital has done it said digital assets can help protect against macro risks.
The Guggenheim is among the many institutional investors debuting in the crypto world. Last month, the firm filed an application with reserves the right to invest up to 10% of its $ 5.3 billion MacroOpportunities Fund in the Grauscale Bitcoin Trust, which invests solely in Bitcoin.
Minerd speaks at Bloomberg Markets.
– With the assistance of Scarlet Fu and Tom Keene