Major Investor Announced That Bitcoin Will Replace Gold And Increase In Price To $700,000May 8, 2018
According to a partner at Pfeffer Capital, the Bitcoin network could be possibly worth more than $6 trillion, while other cryptocurrencies were lost. The institutional investor stated, “that Bitcoin is better than gold “on every front” and could eventually be worth around $700,000.”
John Pfeffer, a partner at UK-based Pfeffer Capital, made the latter remarks in New York at the Sohn investment conference. This event is designed as a place for investors to promote the best stocks to invest in and has never been seen anyone recommend cryptocurrency in the past.
Pfeffer explained, “Bitcoin is the first viable candidate to replace gold the world has ever seen. So if bitcoin becomes the dominant non-sovereign store of value, it could be the new goal, or now reserve currency.”
He added that most of the other crypto assets are bad bets. He also said that when Bitcoin displaced 25 percent of the foreign reserves, the bitcoin network’s total worth would be somewhere in the region of $6.4 trillion. Furthermore, the Bitcoin’s present market cap is around $150 billion; wherein one bitcoin is worth $9,000.
It was the first time that a speaker talks about bitcoin and other cryptocurrencies as an investment opportunity at Sohn. It was also a time wherein major hedge fund investors are putting their bets on the digital asset.
According to reports, the popular investor George Soros is planning to invest in Bitcoin, which formerly called it a bubble. On the other hand, Bill Miller, a billionaire investor announced way back in December 2017 that part of his hedge fund was tied up in bitcoin industry. At the time, the value of one bitcoin was almost close to $20,000.
Reinforcing his faith in bitcoin, Mr. Pfeffer had donated ten bitcoins to the Sohn Foundation. However, there is a condition that they must not cash them in for five years, saying: “Buy the ticket, take the ride.”
The fund manager also notified that there were also substantial risks that are associated with the cryptocurrency industry. But, unlike gold, the utility of crypto went beyond a store of value. In some countries who struggle in currency, bitcoin and other digital currencies can be a legitimate alternative. It also supports the latest research from Investing.com which found countries having unstable economies.
Senior analyst Jesse Cohen said, “In addition to cheap mining costs, another thing that the Eastern European countries which appear on this list have in common is that all have gone through prolonged periods of war and recession recently, which has resulted in the poor working class losing trust in government and banks.”