Respected hedge fund strategist-turned cryptocurrency investor, Dan Morehead, has come out with some incredibly bullish sentiments about Bitcoin. He believes that in the long-term, today’s sub $20,000 price point for a single Bitcoin will seem like a bargain. He told CNBC:
“For the big blockchains like Bitcoin, Ethereum and Ripple, we’re in the first innings of a multi-decade thing… And there’s going to be some ups and there’s going to be some downs, but we’re still really early.”
He elaborated on the non-linear nature of the uptrend, stating that the price could easily have halved by this time next week. Morehead went on to remind viewers of Tuesday’s “The Coin Rush” feature on the CNBC network that if a market grows quickly, it can also shrink fast. To highlight this, he cited the price difference between today and the month just passed. However, the Wall Streeter-turned cryptobull who first bought Bitcoin in at $72, remains positive about it’s future.
When asked what the “intrinsic value of Bitcoin” was, the former Goldman Sachs, and Tiger Management trader replied:
“If you add up all the different use cases, it’s a payment rail, like a digital gold, and a way to get round correspondent banking, you come up with a number that’s an order of magnitude, or two higher than today’s price.”
The interview then touched on Bitcoin mining. Morehead commented on the period of rapid expanse in which the number of units securing the network was doubling every six weeks. He referred to it as like “Moore’s Law on crack.” He went on to explain that as the incentive and competition on the network increases so too does the price of mining the coin itself. This in turn increases the value of each coin.
Perhaps most bullish of all was his estimation that only 5% of institutional investors on the planet have any access to blockchain technologies at all. He anticipates that in the next 18 months, that will no longer be the case.
With interest seemingly growing for further futures markets, the thinking is that additional financial products will begin to appear around the cryptocurrency space in 2018. Of course, the influx of funds will drive the prices much higher than today’s.