We’re already getting used to hearing very optimistic predictions regarding Bitcoin’s future, so institutional investor John Pfeffer’s, partner at UK-based Pfeffer Capital, doesn’t come as a very big surprise.
According to The Independent, he believes that the world’s biggest cryptocurrency, in terms of market cap, is now better than gold “on every front”. Even more, it can reach a point in which its value can actually surpass $700,000.
Cryptocurrencies are finally backed up at major events
The remarks were made at the Sohn investment conference in New York, an event which creates the perfect environment for investors to recommend the best stocks to invest in. Also, it marks a premiere, as nobody recommended Bitcoin or any other cryptocurrency here. Until now.
“Bitcoin is the first viable candidate to replace gold the world has ever seen,” John Pfeffer said. “So if bitcoin becomes the dominant non-sovereign store of value, it could be the new gold, or new reserve currency.”
Mr. Pfeffer added that if Bitcoin manages to displace 25 per cent of foreign reserves, the total worth of the network would be somewhere around $6.4 trillion. And this is absolutely huge, considering that the coin’s current market cap is almost $160 million at the moment of the writing, with a token trading at $9,360.
Investors can’t resist the temptation
And it looks like a lot of investors are sharing the same impression right now. For example, George Soros is reportedly ready to put some money into Bitcoin, despite calling it a bubble previously. Also, billionaire investor Bill Miller has half of his hedge fund tied up in Bitcoin, as reported in December, when the value of one token was $20,000.
Finally, John Pfeffer warned everybody present at the event that there are several risks associated with investing in cryptocurrencies, but, unlike gold, their utility went far beyond a store value, not to mention all the potential they have.
There are a lot of countries right now with struggling currency, but Bitcoin or other digital assets are ready to offer citizens a legitimate alternative.