Hedge Fund Veteran Mark Yusko Doubles Down on $250,000 Bitcoin Prediction Despite Steep Correction – Here’s Why
Managing partner of cryptocurrency hedge fund Morgan Creek Digital isn’t backing down on its big Bitcoin (BTC) prediction.
In a new Altcoin Daily interview, crypto trader Austin Arnold asks Mark Yusko if his prediction from last year that Bitcoin could reach $250,000 in half a decade still stands.
According to the hedge fund veteran, Bitcoin skyrocketing to $250,000 seems “easy” to him, but notes that “the timing is more difficult.”
“I absolutely believe that Bitcoin is digital gold … I think it’s a better form of store of value. I absolutely believe that. Gold – $10 trillion above the ground. Half of that [is] in jewelery and chalices – it does not count. The monetary value of gold [is] around 5 trillion dollars. So $5 trillion from [BTC’s market cap of] 400 billion dollars today, that is [a] 10x. [A] 10x from here to $20,000 is $200,000. Around that, my numbers are a little lower, to that $250,000 figure. It seems easy to me to get to $250,000 because you have some lost or stolen coins. No problem.”
Yusko also says that another way to look at Bitcoin’s potential rise to his massive price target is to note BTC’s historical performance each time it goes through a halving event.
“Every halving we had a zero – first halving was $10, second halving was $100, third halving was $1,000 [and] fourth halving was $10,000, so that means the next halving is $100,000.”
The Morgan Creek Digital CEO also points out Bitcoin’s exponential growth due to network adoption. Yusko mentions Metcalfe’s Law, which states that the value of a network is proportional to the number of users.
“The idea of the network is the more participants, the better. So the further we go, the more network we have, and the more exponential growth. That’s why when you look at pictures of Bitcoin, it always looks like this: it goes completely parabolic and then crashes, and then parabolic and crashes. But if you zoom out, it actually looks like an S-curve.
[The] the first 10% happened over 10 years, the next 80% will happen in the next 10 years and the last 10% in the next 10 years. So that’s a 30-year trend, and that’s true of any technological innovation… The likelihood of this technology going away: zero.”
At the time of writing, Bitcoin is trading hands at $19,501. A move to Yusko’s price target suggests upside potential of over 1,180% for BTC.
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Featured image: Shutterstock/Alberto Andrei Rosu
