Guggenheim’s Scott Minerd Says Bitcoin Should Be Worth $400,000

Bitcoin 12 17 2020 LearnCrypto Powered By Wyckoff SMI 2022

As Bitcoin surges to record highs, Scott Minerd of Guggenheim Investments believes the world’s largest cryptocurrency’s fair value still has a ways to go.

Bitcoin’s scarcity combined with “rampant money printing” by the Federal Reserve mean the digital token should eventually climb to about $400,000, Minerd, the firm’s chief investment officer, said in an interview. His comments came on the same day Bitcoin breached $20,000 for the first time, bringing its 2020 gain to 190%.

“Our fundamental work shows that Bitcoin should be worth about $400,000,” Minerd told Bloomberg Television on Wednesday. “It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”

Bitcoin climbs above $20,000 just weeks after retaking $19,000

It’s a similar argument to what’s often offered by some of Bitcoin’s most prominent backers, including famed investor Paul Tudor Jones, who said earlier this year he’s been buying Bitcoin as a hedge against what he expects will be faster inflation after years of muted consumer-price increases. Similarly, Galaxy Digital’s Mike Novogratz has said that the digital asset can help protect against macro risks.

Guggenheim is among the many institutional investors dipping a toe in the crypto world. Last month, the firm filed to reserve the right to invest as much as 10% of its $5.3 billion Macro Opportunities Fund in the Grayscale Bitcoin Trust, which invests solely in Bitcoin.

Photo: Patrick T. Fallon/Bloomberg

With assistance by Scarlet Fu, and Tom Keene

Related Articles

Responses