Guggenheim Investments‘ chief investment officer, Scott Minerd, believes that Bitcoin should be priced at $400,000. Find out.
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 of Scott Minerd, Chief Investment Officer at Guggenheim Investments.
Minerd believes the fair value of Bitcoin is close to $400,000. According to a review by Bloomberg, he believes that the fair value of the world’s largest crypt currency still has a long way to go. That’s just when 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 cryptomoney. The firm recently filed a petition 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 bullish factors considered by the expert.
The shortage of Bitcoin combined with the Federal Reserve’s „unbridled money printing“ means that BTC should eventually rise by about $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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It’s a similar argument to what’s 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’s 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 just Minerd’s opinion. We reiterate that the idea is not to assume as absolute truth the opinions of experts. Whether or not to invest in an asset, be it Bitcoin or whatever, depends on your personal plans and analysis.