Lucy Nicholson / Reuters
- Bitcoin should be worth $ 400,000 based on its limited supply and value compared to gold, Scott Minerd of Guggenheim told Bloomberg on Wednesday.
- “Our basic work shows that bitcoin should be worth about $ 400,000,” he said. “It’s based on the relative scarcity and valuation like things like gold as a percentage of GDP.”
- His comments came on the day bitcoin crossed $ 20,000 for the first time.
- Watch bitcoin trade live here.
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Bitcoin should be worth $ 400,000 based on its rarity and value compared to gold, Scott Minerd of Guggenheim told Bloomberg on Wednesday.
The digital asset rose 6%, to around $ 22,497, from 8.22 am GMT on Thursday, bringing its one-year return to just over 200%. Bitcoin rose above the $ 20,000 level for the first time in history one day ago, meaning its price gained 12% in two days.
The supply of bitcoin is limited to 21 million, giving it its anti-inflation trademark. The shortage of the ticket combined with the Federal Reserve’s “printing of rupees” suggests its price should rise to $ 400,000, Minerd told Bloomberg.
“Our basic work shows that bitcoin should be worth about $ 400,000,” he said on Bloomberg Television. “It’s based on the relative scarcity and valuation like things like gold as a percentage of GDP.”
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Many bitcoin attributes are similar to gold, and it also has unusual value in transactions made, he said. Minerd’s comments echo those of new Senator Cynthia Lummis who believes bitcoin is a better store of value than paper money because of its limited supply. The Senator-elect plans to teach Congress how to use bitcoin to reduce U.S. national debt when he takes office in January.
Guggenheim is among the founding players who validate the legitimacy of bitcoin as a reserve asset. The company filed last month to reserve the right for 10% of its $ 5.3 billion Macro Opportunities Fund to invest in Bitcoin’s Grayscale Trust, a bitcoin-focused investment vehicle.
Three major players are holding up the huge interest around bitcoin this year. That can be pinned to the enthusiasm of institutional investors, Wall Street professionals, and the involvement of retail investors, according to Blockchain.com head of research Garrick Hileman.
According to Hileman, as many as 100 million people own crypto assets.
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