According to an insight by investment bank Morgan Creek Capital CEO, Bitcoin had the potential to rise to as high as $250 million in the next five years or so. The move would see the cryptocurrency challenge Gold’s market capitalization and its status as the de-facto safe haven for everyone.
Morgan Creek CEO Believes Bitcoin will Mirror Big Tech
According to a recent interview by Morgan Creek CEO and co-founder Mark Yusko, Bitcoin and the crypto field in general is following the trajectory of big tech companies, the FAANG group (Facebook, Amazon, Apple, Netflix and Google).
This is a network, and networks grow in an exponential way. This is the fastest network in history to a trillion dollars of value, right on the heels of the FAANGs that took, you know, 15 to 20 years depending on which one you look at.”
At a current price index of around $58k and a market capitalization of around $1.1 trillion, the cryptocurrency needs to increase more than 420% to get to this level predicted by the Morgan Creek top executive. According to him, Gold is being rivalled by Bitcoin which has become digital gold, one for the future. So, it makes sense that the competitor is going to get close to Gold’s valuation in the coming future. According to him, the total market capitalization of Gold is around $4-5 trillion and therefore that is going to be the target for the cryptocurrency going forward.
Is there Room for Other Cryptocurrencies?
The investment banker also predicted a future in which cryptocurrencies were used for various other functions and he said there was room for other digital assets going in the future. However, he is not a fan of Dogecoin itself which suffered a big 40% price crash despite recent appearance and mention by Elon Musk on Saturday Night Live. Yusko believes that most of these cryptocurrencies despite their current outlook and upticks are not going to make it. There is only room for a few according to him.
The underlying stats and data don’t lie as well. Bitcoin despite being a relatively low 44% of the market right now still has 90% of the hash rate and interest around the world. Similarly, Ethereum and a few other top coins still command 99% of the developing work and improve with time. So, while the pumps and dumps of smaller coins are likely to continue, only a few original yet useful examples are expected to remain in the future.
Image source: www.bitcongress.org