The extension follows reports of multiple whales pushing into Bitcoin, including Eric Peters and VIX Whale ’50 Cent’ who noted that his fund now holds roughly 2.5% of its assets in Bitcoin.
“We see this as a small but potent insurance policy against the continuing devaluation of the world’s major currencies. Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see.”
Additionally, during an interview with Bloomberg TV, Guggenheim Investment’s Scott Minerd extended his recent discussion of crypto, by noting that Bitcoin’s scarcity combined with “rampant money printing” by the Federal Reserve mean the digital token should eventually climb to about $400,000:
“Our fundamental work shows that Bitcoin should be worth about $400,000,” Minerd told Bloomberg Television on Wednesday.
“It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
Which appears to reflect JPMorgan’s previously noted work that the potential longterm upside for bitcoin is considerable if it competes more intensely with gold as an “alternative” currency, given that the market cap of bitcoin (at $383bn) would have to rise about 7 times from here to match the total private sector investment in gold via ETFs or bars and coins which stands at $2.6tr.