Digital Assets Data is a company that describes itself as a powerful institutional-grade data and research platform to supply hedge funds, professional asset managers, and more. Yesterday, the CEO of this firm said that he thought that Bitcoin could reach a million dollars in less than 10 years.
Is Bitcoin at a million dollars unrealistic?
For many the prediction of this character is unrealistic. But, it seems that with each new forecast that comes out, these big players get more optimistic.
In December 2020, the global chief investment officer at Guggenheim Partners, an asset management and advisory firm, said that Bitcoin should trade around $ 400,000.
When BTC broke $ 20,000 in December last year, Minerd made known through Bloomberg TV the fund managers’ decision to invest up to 10% of its net asset value in the Grayscale Bitcoin Trust.
They asked him if they had already started buying the cryptocurrency and if this was linked to the decisions of the FED. To which he replied that clearly his interest in Bitcoin is tied to central bank policy and unbraked money printing.
However, regarding the mutual fund to invest, he said that it was not yet available. He noted that they were not yet effective with the SEC, so they remain on hold.
To explain the $ 400,000 valuation for BTC, he stated that this is based on efficiency and relative valuation. Just as gold is used as a percentage of GDP.
Even when BTC was hovering around $ 40,000 in February, Minerd turned more bullish, suggesting that the price could hit $ 600,000.
Inflation is what is making cryptocurrencies stand out
Inflation is rising globally, which is causing a huge tide of investors small and large towards BTC. Investing capital sees this asset as a hedge against the devaluation of fiat currencies.
In Turkey, for example, the popularity of cryptocurrency has increased rapidly, while annual inflation in that country reached 17.53%, meaning a maximum of two years. These types of events cause more and more people to wait for a million dollars for each Bitcoin.
At the time of this writing, BTC is trading at $ 39,947.81, accumulating a gain of 5.27% in the last 24 hours and 23.63% in the last 7 days.