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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