Guggenheim Investments’ chief investment officer, Scott Minerd, believes that Bitcoin should be priced at $400,000. Find out.
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Bitcoin is known as the leading crypto currency, at a time when it finally surpassed its historical high. However, some suggest that the value should be higher, and this is the case with Scott Minerd, Chief Investment Officer at Guggenheim Investments.
Minerd believes that the fair value of Bitcoin is close to $400,000. According to a Bloomberg review, he believes that the fair value of the world’s largest crypt currency still has a long way to go. This comes just as Bitcoin surpassed $20,000 for the first time after a 190% rally.
The Guggenheim is among the many institutional investors diving into the world of cryptomonics. The firm recently filed an application to reserve the right to invest up to 10% of its $5.3 billion Macro Opportunity Fund in the Grayscale Bitcoin Trust, which invests in Bitcoin only.
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What factors does Scott Minerd take into account to ensure that BTC’s price should increase further?
Generally speaking, the factors that Minerd considers in order to make his statement are The shortage of currencies, and the “printing of money” by the FED. Thus these stand out as the bullish factors considered by the expert.
The shortage of Bitcoin combined with the Fed’s “unbridled money printing” means that BTC should eventually rise by around $400,000.
“Our fundamental work shows that Bitcoin should be worth about $400,000,” Minerd said in a recent interview. “It’s based on scarcity and relative valuation, like things like gold, as a percentage of GDP. So, you know, Bitcoin actually has many of the attributes of gold and, at the same time, it has an unusual value in terms of transactions.
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This is a similar argument to what is often offered by some of Bitcoin’s most prominent investors, including the famous investor Paul Tudor Jones.
Tudor Jones said earlier this year that he has been buying Bitcoin as a hedge against what he expects to be faster inflation after years of moderate consumer prices. Similarly, Mike Novogratz of Galaxy Digital has said that the digital asset can help protect against macro risks.
However, this is only Minerd’s view. We reiterate that the idea is not to take the experts’ opinions as absolute truth. Whether or not to invest in an asset, be it Bitcoin or whatever, depends on your personal plans and analysis.