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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.