Scott Minerd, chief investment officer of the multi-billion dollar investment firm Guggenheim Partners, has revised his previous prediction for bitcoin's long-term price potential.
Minerd said the firm has been looking at bitcoin for almost 10 years and previously the size of the market "just wasn’t big enough to justify institutional money."
However, as the total market cap of bitcoin got bigger – around the time bitcoin's price passed $10,000 – it started to look "very interesting."
“If you consider the supply of bitcoin relative ... to the supply of gold in the world, and what the total value of gold is, if bitcoin were to go to those kinds of numbers, you’d be talking about $400,000 to $600,000 per bitcoin,” he said.
However, the cryptocurrency's rapid rise in just weeks from $20,000 to $40,000 "smacks of short-term speculation," he said. Further, the institutional levels of market participation, while growing, aren't yet big enough to support current price levels.
Yet, cryptocurrency "has come into the realm of respectability and will continue to become more and more important in the global economy," Minerd said.
In comments last December, the CIO had said bitcoin could be worth up to $400,000 in time, based on the same rationale.
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.