Guggenheim CIO Says Bitcoin 'Should Be Worth' $400,000

Minerd based his analysis on bitcoin's scarcity and relative value to gold.

Dec 16, 2020 at 8:19 p.m. UTC
Updated Sep 14, 2021 at 10:44 a.m. UTC

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.

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