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- It has been a rough year in 2020 for many of us. The pandemic, the economic crisis, unemployment rising through the roof uncontrollably, but for bitcoin things seem to be looking up.
- As the economy and traditional markets took a big hit, the world of cryptocurrency has thrived if nothing else.
It has been a rough year in 2020 for many of us. The pandemic, the economic crisis, unemployment rising through the roof uncontrollably, but for bitcoin things seem to be looking up.
As the economy and traditional markets took a big hit, the world of cryptocurrency has thrived if nothing else. Currently priced above $23,000 at the time of writing, bitcoin is well on its way to never seen before highs.
Before we go any further though, it is worth mentioning that we are not financial advisors and this is not financial advice. Please do your own research before investing in a cryptocurrency.
Scott Minerd, the chief investment officer at Guggenheim Partners has given his bullish prediction that bitcoin will be able to further spike in price. During a recent interview, a technical analysis from Guggenheim suggested that the leading coin could be worth up to $400,000 at some point in the future. He even went on to say what could cause such a surge.
Speaking in an interview with Bloomberg earlier this week on the 16th of December, the CIO indicated that the fair value for bitcoin is around $400,000 according to his company's analysis.
He went on to highlight the reasoning for this massive price stamp. To start with, he mentions the scarcity of bitcoin and highlighting that the supply is solidified at 21 million. Furthermore, he adds that the supply for the asset is going down after every halving event, the latest one happened earlier this year in May.
Scott then went on to talk about the fact that bitcoin has a lot in common with the precious metal of gold. Highlighting that it is an Internet-based monetary payment system, a lot of its attributes are like that of the traditional assets. He further said:
“It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
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