Bitcoin’s gradually developing infrastructure could send its value to $400,000, according to Mark Yusko.
“Bitcoin is much easier to transport. It is much easier to divide. It is tough to break a bar Gold into its component pieces. Bitcoin has all these essential qualities that I think are superior to Gold.”
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Yusko envisioned a scenario where the Bitcoin network would inherit the entire Gold market valuation, which is roughly around $7.3 trillion. He then divided the yellow metal’s total market capitalization with Bitcoin’s total supply of 21 million units. A rough estimate appraised bitcoin at a rate of $400,000 per unit which, added Yusko, could as well be $500,000, given a portion of bitcoins had been lost forever.
Trust and Distrust
Yusko’s statements came at a time when prominent economists and legendary investors were sidelining bitcoin owing to its alleged lack of use case. Billionaire investor Warren Buffett, for instance, called bitcoin “a gambling device” that sits there without producing anything useful. American-Iranian economist Nouriel Roubini went a step further and called bitcoin “the mother and father of bubbles,” while debating billionaire bitcoin bull Mike Novogratz at the SALT 2019 conference in Las Vegas.
“It’s too volatile to become a stable store-of-value,” argued Roubini. “I’ve never seen such a level of manipulation. The reality is, these are not currencies.”
Nevertheless, Yusko appeared confident on the way the Bitcoin protocol functions. The hedge fund manager projected users in the Bitcoin network as its real jewels, explaining that they are the ones that add value to it by holding bitcoins. He reasoned while providing the recent hack at cryptocurrency exchange Binance as an example. The $40 million worth of loss didn’t shake the bitcoin users faith in the network. Nevertheless, the price continued to trend upwards, proving that people were ready to hold on to their bitcoins or add more money to the bitcoin network despite interim shortcomings.
“The price,” added Yusko, “isn’t the value. The value is determined by the number of users on the network, the amount of capital that comes in after conversions from fiat. All of those fundamental metrics have gone up this year. So I’m pretty bullish on bitcoin and another crypto today.”
Bitcoin was trading at $6,037 at the time of this writing, up more than 100 percent from its previous low around $3,100.