Bitcoin may struggle to reclaim more than $ 60,000, but Morgan Creek Capital Management’s Mark Yusko has an even loftier goal.
The investment management firm’s founder and chief investment officer predicts the cryptocurrency could reach $ 250,000 within five years. He says the key is that it’s so much more than just a token – something he believes many investors overlook and underestimate.
“It’s all about network acceptance and increased use,” Yusko told CNBC’s “Trading Nation” on Friday. “This is a network, and networks are growing exponentially. This is the fastest network in history, valued at a trillion dollars, just after the FAANGS which, you know, lasted 15-20 years depending on which one you’re looking for.” at the.”
Yusko bases his $ 250,000 target on gold equivalency. If the monetary value of gold is $ 4 trillion, digital gold should increase to that amount – a sum that puts the price at a quarter of a million dollars per coin.
“What people miss is that this is a technology advancement in computing power that is not going away,” he said. “It is a powerful computer network that will become the basic protocol for the Internet of Value.”
It’s not just Bitcoin that has bounced back this year. Litecoin and Ethereum are both triple digits, while ‘meme’ crypto Dogecoin is up more than 13,000%.
However, Bitcoin is still the gold standard in the crypto world, says Yusko. He compares it to the way the internet works. Bitcoin is the base layer protocol like TCP / IP, the basis over which computers can establish connections and communicate, while a crypto such as Ethereum is comparable to “www dot”, the “toolkit” that is built on this basis.
“So, yes, there is room for a few logs to survive, but there are thousands of coins and Doge’s in that category that are really useless. They are just utility models that have no underlying value or use case, and.” they will eventually go away, “said Yusko.
Bitcoin is up 98% in 2021. It has struggled over the past month, however, barely rising more than 2%.