John Pfeffer is a partner at Pfeffer Capital, a UK-based company. He’s long on Bitcoin and says that it’ll go to the moon with a value of $700,000 and also states that it’ll replace gold itself. It has a store of value over other competing coins that have to create economic activity just to create value on their network. He said that the value of utility tokens are less attractive than Bitcoin as investments.
His $700K valuation assumes that it can replace all gold bullion, which is valued at $1.6 trillion. The total foreign reserve currency is valued at $12.7 trillion which is a huge opportunity for Bitcoin. There are a total of 18 million coins and with the adoption of central banks, Bitcoin gets its value at $700K. He estimates that it only has a 1% chance of actually reaching that valuation and it probably won’t replace all foreign currency. Replacing just gold bullion would be valued at $90,000- a still rather large chunk of cash.
He states: “Bitcoin is the first viable candidate to replace gold the world has ever seen.” and “So if Bitcoin becomes the dominant non-sovereign store of value, it could be the new gold or new reserve currency.”
Analytical. Paranoid. OCD. Interested in the world of crypto and how it affects our current world and future. New to investing, not so new to know how crypto works and influence the world of fiat currency. Blockchain is my second wife.
Disclaimer: Our authors may hold active positions in one or multiple cryptocurrencies discussed on this news portal. Opinions expressed at AWSMO are NOT investment advice and any investment in one or more cryptocurrencies may be high-risk and extremely volatile. Please due your due diligence before making any investments in any cryptocurrency. Your investments are your own risk and you assume full responsibility for your actions.