Bitcoin’s recent market performance is forcing the hands of many analysts into rethinking their prediction about what the value of the crypto asset could be in the long term. One of those recent reviewers is Scott Minerd, the chief investment officer of Guggenheim Partners which is a leading investment firm in the United States.
Last December, Minerd had predicted that the value of the leading crypto coin could get to as high as $400,000 in the nearest future. But, in a recent interview with CNN’s Julia Chatterley, the CIO of Guggenheim has said that the value of the crypto king could climb to $600,000.
According to Minerd, Guggenheim has been studying Bitcoin for the best part of the last decade and its previous market size was not big enough to justify the input of institutional investors. But, as the market cap of the asset increased, especially when its price exceeded $10,000, it began to take a more interesting view.
He added that if the supply of Bitcoin is compared to the supply of gold and the total value of what gold is, then one can be talking of the value of a unit of the coin being between the range of $400,000 and $600,000 in the nearest future.
Minerd was also quick to point out that the recent surge in the value of cryptocurrencies depicts short-term speculation, saying that the current influx of institutional into the market, though growing, is not still big enough to support the current price level of the assets.
He concluded by saying that “Cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy.”