$100,000 Bitcoin in two years predicts former crypto cynic
Mark Yusko of Morgan Creek Capital Management is banking on stratospheric growth next year and in 2021
A former crypto cynic has predicted that Bitcoin will soar in value and could be worth almost 15 times its current value within two years.
"Between now and 2021, we're likely to see $100,000 (£75,000, €90,000) Bitcoin," Mark Yusko, the chief executive and chief investment officer at Morgan Creek Capital Management, told Business Insider.
His pronouncements follow a mixed year for the cryptocurrency. Bitcoin started the year making up some of the ground it lost during the crypto crash of 2018. By the summer though it had risen to between $7-8000 where it has remained ever since. It is still, however, nowhere near the dizzy heights of $16,000 it attained in early 2018.
Yusko points to the infancy of the technology as the reason for his aggressive prediction. "It really is about the growth mindset and focusing on the venture capital upside or the asymmetric upside of the asset at this point," he said.
The analyst also stresses that Bitcoin owners would be foolish to trade their coins when it does hit the $100k figure.
"By 2025, we're likely to see $250,000 Bitcoin, and then some time out, 2030, we could see $400,000 or $500,000 Bitcoin as it reaches gold equivalence,” argues Yusko who who oversees some $1.5bn worth of assets at his US based hedge fund
Yusko's comments followed pronouncements by Deutsche Bank strategist Jim Reid last week who argued that there could be a backlash against fiat money and that “demand for alternative currencies will therefore likely be significantly higher by the time 2030 rolls around."
Ultimately, Bitcoin and other cryptocurrencies have risen well above the annualised returns of the US equities, commodities and bond markets for 2019.
At the start of the year traditional asset classes were ahead, but the rise in Bitcoin price throughout the summer meant it overtook the other assets. Bitcoin is currently up 100 per cent since the year began, while, Ether, the world’s second-largest crypto is up 35 per cent year-to-date.
Lorenzo Pellegrino, CEO of Skrill, a cross-border payments platform using crypto, said “as it (crypto) matures we should start to see increased stability and the core fundamentals will become more apparent."
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