One of the biggest figures in cryptocurrency is the host of the Keiser Report, Max Keiser. Recently, Keiser took part in an interview for Kitco News where he highlights that Bitcoin can capture a part of the worldwide gold market.
The famous investor said that despite the strong bearish streak of last year, he still believes that it is possible for the flagship currency to see off a $100,000 price mark. He adds that he doesn’t expect to make any significant sales unless this value is surpassed.
“To capture a piece of the gold market, you’re talking $60-, $70-, $80-, $100,000 to Bitcoin. I have not sold any Bitcoin because my price target is $100,000 and beyond.”
Keiser explained that from his point of view, Bitcoin bottomed close to the $3,200 range. Technical reasons weren’t behind this conclusion though. Instead, his reasoning was on more of a political level.
“When the Federal Reserve bank signalled that they were going to permanent quantitative easing, I said look, that’s the bottom for bitcoin, that was about $3,200 on bitcoin because they’re making it clear now that there’s going to be no accountability by the Fed. They’re going to print ad infinitum, ad nauseam, there’s going to be no rollback, no kind of attempt to balance their books.”
Keiser says that one of BTC’s advantages over fiat is that there is a fixed number of coins in circulation which prevents a controlling entity from generating an excess of circulating Bitcoin that could cause a drop in prices as a result of inflation.
Keiser describes this as irresponsible and he stressed that bubbles and price changes are normal because BTC is going through a transition stage that gives is different characteristics.
“Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily.”
To finish off, Max said that investors don’t have to choose between one or the other. In his eyes, owning both is important to diversify risk:
“I own a lot of gold, I bought a ton of silver, but I also own a big position in Bitcoin”