Morgan Creek Capital founder Mark Yusko sees a bright future for Bitcoin. He recently revealed his belief that Bitcoin’s steadily developing infrastructure could push the cryptocurrency’s value to $400,000.
Yusko characterized Bitcoin as the digital equivalent of gold. After pointing out that Bitcoin is already seeing increased adoption similar to what happened with gold over the centuries, he emphasized that the former comes with inherent advantages that the latter doesn’t.
“Bitcoin is much easier to transport,” he said. “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.”
Yusko’s $400,000 value prediction is based completely on Bitcoin inheriting the entire $7.3 trillion market valuation for gold.
If that happens, dividing $7.3 trillion with Bitcoin’s total supply of 21 million unit will result in a price of around $400,000 for each unit of Bitcoin.
Yusko added that the valuation could just as well be $500,000, given that a portion of Bitcoins are believed to have become lost or inaccessible.
Yusko’s bullish stance is the complete opposite of some other prominent names in the investment landscape. Warren Buffett, for example, believes that Bitcoin is nothing but a gambling device that doesn’t produce anything remotely useful.
While debating Bitcoin bull Mike Novogratz at the SALT 2019 conference, economist and anti-crypto crusader Nouriel Roubini also claimed that Bitcoin was “the mother and father of bubbles.”
“It’s too volatile to become a stable store-of-value,” he said. “I’ve never seen such a level of manipulation. The reality is, these are not currencies.”
Bitcoin’s value isn’t its price
Yusko, however, argued that Bitcoin’s real value doesn’t come from its price, but from the number of users active on the Bitcoin network.
He pointed out that despite the recent hack that cost crypto exchange Binance $40 million, Bitcoin users didn’t lose faith in the network. In fact, Bitcoin’s price continued its steady climb.
“The price isn’t the value,” said Yusko. “The value is determined by the number of users on the network, the amount of capital that comes in after conversions from fiat. All of those fundamental metrics have gone up this year. So I’m pretty bullish on bitcoin and another [sic] crypto today.”