The CEO of global investment manager VanEck, Jan van Eck, is reportedly expressing optimism that the price of Bitcoin (BTC) will rise to stratospheric heights.
The VanEck CEO says that Bitcoin could rally by around 732% from current levels to reach $250,000, according to a report by business publication Barron’s.
Van Eck says that at the six-figure price, which he believes could take decades to materialize – Bitcoin’s market capitalization will be about 50% of gold’s market cap.
“Investors see it as a complement to gold. That’s the short version. Bitcoin has limited supply; the supply is visible. And it’s very hard, almost impossible, to change that. Bitcoin will go to half the market cap of gold, or $250,000 a Bitcoin, but that could take decades. It’s hard to put a timeframe on it.”
Bitcoin is trading at $29,226 at time of writing.
Per the report, Van Eck says that institutional investors and governments will drive Bitcoin’s price appreciation.
“Bitcoin has further price appreciation because it’s maturing. And its institutional adoption is increasing every year. It isn’t just institutional investors, but also governments around the world that are looking to it as a useful asset.”
On Bitcoin’s much-vaunted store-of-value use case, the CEO of the $80.4 billion asset manager says that Bitcoin is already establishing itself as a threat to gold’s dominance.
“Part of the demand for gold has been siphoned off into Bitcoin, which is emerging as a long-term competitor to gold…
Gold was the primary asset, but sometimes people bought silver or other precious metals. People looking for a store of value will look to gold, but also to Bitcoin. We’re in the middle stages of that adoption cycle, and there is further upside.”
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