Bitcoin is the new gold
Yusko claims that Bitcoin could become a viable replacement for gold. The top cryptocurrency is often called digital gold since it has a lot of similarities with one of the oldest assets. However, in the digital age, you will hardly see millennials pouring money into bulky gold bars, which explains why the $7.3 trn market cap is up for grabs.
“Bitcoin is much easier to transport. It is much easier to divide. It is tough to break a bar gold into its component pieces. Bitcoin has all these essential qualities that I think are superior to gold,” said Yusko.
Hence, the math behind his prediction is rather simple – you have to divide the total market cap of gold by the circulating supply of Bitcoin in order to get the $400,000 estimation. Notably, the same figure was recently suggested by another crypto analyst.
$20,000 in two years?
According to Yusko, it could take Bitcoin a decade or even more in order to reach such a mammoth-size price. Meanwhile, another prominent hedge fund manager Mike Novogratz, who spearheads crypto investment bank Galaxy Digital, recently said that Bitcoin could retest its current ATH of $20,000 as early as in 2021.
Meanwhile, Bitcoin has recently reached the $6,300 level, thus setting new yearly highs almost on a daily basis. The Bitcoin dominance index (BDI) continues to grow as altcoins mostly remain in limbo.