It’s been a rocky road for bitcoin as of late. Cryptocurrency values surged following President Donald Trump’s election, including bitcoin, which reached six figures. Then, after Trump announced plans to place large tariffs on goods from Canada, Mexico and China, bitcoin fell to $92,000 — it’s lowest value in three weeks.
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However, bitcoin quickly rebounded, and Grant Cardone, private equity fund manager and real estate investor, believes it will continue its upward trajectory in the coming years.
“I predict bitcoin at [$250,000] this year, and I think we hit a million dollars by 2030,” Cardone, who recently launched the 10X Space Coast Bitcoin Fund, told GOBankingRates.
Cardone’s optimism is based in large part on having a pro-crypto administration in power.
“Donald Trump’s pro crypto, Howard Lutnick, the commerce secretary, is pro crypto,” Cardone said. “Everybody in the administration is like, why not have a new form of currency, which is digital? It’s proven — it’s not a new thing. It’s 15 years old. And then two days before Trump goes into office, he pops a meme coin. So these people want to try new technologies around money.”
However, Cardone doesn’t think everyone should go out and buy bitcoin — here’s why.
Bitcoin Doesn’t Meet Cardone’s Investment Criteria
Cardone previously told GOBankingRates that he looks for three criteria before making a potential investment.
“No. 1 for me is, I don’t want to lose my money,” he said. “No. 2 for me is, will I get cash flow? No. 3, the perfect scenario would be not only won’t I lose it and I get cash flow, but it’s going to go up in value over long periods of time.”
Bitcoin doesn’t meet all of these criteria, so Cardone does not recommend it as an investment.
“I’m not telling people to go out and buy bitcoin,” he said. “I don’t think most people should because it doesn’t [create] cash flow and it doesn’t have tax advantages. And most people are going to buy bitcoin for $105,000 today, and they’re going to be like now what? What are you going to do with it?”
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Cardone doesn’t believe bitcoin is a wise investment on its own, which is why he launched his 10X Space Coast Bitcoin Fund. The $87.5 million fund combines institutional-quality real estate with bitcoin purchases.
“I came up with a way for people to actually own bitcoin without buying the bitcoin,” he said. “We’re using real estate cash flow, which is very stable and it has great tax write offs. And then we’re adding bitcoin, which is very unpredictable, very volatile. It could explode to the upside, it could go down. But if you can hold it for long periods of time and put the two together, you take a real estate project that would do 10% and turn it into a real estate project that could do 30% or 40% or even 50% a year.”
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This article originally appeared on GOBankingRates.com: Grant Cardone Predicts Bitcoin Will Reach $1M by 2030, but Still Cautions Against Buying It
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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