Bitcoin (BTC) has largely achieved the status of a store of value among corporate investors. This recognition has led to astronomical price predictions from notable investors like Guggenheim executive Scott Minerd.
BTC’s “Bubble” narrative appears to have faded over the last couple of years and has now firmly established its mark on the global economy.
Can’t Get Enough
Speaking with CNN’s Julia Chatterley, Minerd reinforced this institutional fear of missing out (FOMO) as a growing recognition of the Bitcoin brand. The Chief Investment Officer revealed that Bitcoin has been on the company’s radar for about a decade.
He claims that its entire worth wasn’t previously big enough to justify institutional money. Minerd also highlighted the digital currency’s potential for growth while comparing its market capitalization with gold.
Accordingly, the increasing demand for Bitcoin is not yet fully priced in. He believes that the current investor base for the digital asset limits its worth. Minerd estimates that BTC’s fair value sits somewhere between $400,000 and $600,000:
“If you consider the supply of bitcoin relative to the supply of gold in the world, and what the total value of the good is, if bitcoin were to go to those kinds of numbers, you should be be talking about $400,000 to $600,000 per bitcoin”
Bitcoin Institutional Investors Waiting in the Wings
Minerd explains that the flows coming from other institutions like BlackRock Inc are still weak. However, the last five months have seen the highest institutional demand for the leading cryptocurrency.
Guggenheim has allocated a decent portion of its portfolio to the purchase of bitcoin. BeInCrypto reported that the firm was making plans to invest as much as 10% of its net worth into the Grayscale Bitcoin Trust (GBTC). This amounts to about $500 million.
Meanwhile, Grayscale has maintained its position as one of the largest institutional drivers of digital assets. The firm’s Bitcoin Fund is responsible for the bulk of demand. Emerald Mutual recently reported that it owned over 78,000 shares in the GBTC.
Endorsement from renowned figures is also a major contributing factor to Bitcoin’s credence. Tesla CEO, Elon Musk, is one such figure. Minerd explains:
“Elon has definitely proven himself to be a visionary, and I think that cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy”
The post Guggenheim CIO Suggests Bitcoin Fair Value Between $400k – $600k appeared first on BeInCrypto.
Source: Be In Crypto