Guggenheim Partners Chief Investment Officer Scott Minerd shocked Bloomberg TV hosts Wednesday afternoon when he said his firm's fundamental analysis shows bitcoin should be worth $400,000.
- "Our fundamental work shows that bitcoin should be worth around $400,000," said Minerd. "Whoa!" responded one of the hosts.
- That sky-high price target is based on two things, according to Minerd: the asset's scarcity and its relative value to gold as a percentage of gross domestic product.
- "Bitcoin has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions," Minerd told Bloomberg TV.
- Guggenheim made the decision to start allocating to bitcoin when the leading cryptocurrency was trading around $10,000, Minerd said.
- Minerd said allocating to bitcoin, given its current price above $20,000, is "a little more challenging."
- Guggenheim Partners manages more than $230 billion worth of assets.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.