Bitcoin Should Be Worth $400,000, Says CIO of $230 Billion Firm Guggenheim

Guggenheim CIO claims Bitcoin is currently undervalued.

Following Bitcoin’s record-breaking run, Scott Minerd, the CIO of the multi-billion-dollar firm, Guggenheim has announced that Bitcoin is currently undervalued. Minerd believes that Bitcoin is currently exchanging hands at fair value, and could we’ll make its way up to $400,000.

Bitcoin Should be Valued at $400,000

In an interview with Bloomberg, Scott Minerd, the Chief Investment Officer of Guggenheim Partners, a global investment firm that manages over $230 billion worth of assets, said that Bitcoin should be valued at $400,000.

The analyst believes that the scarcity of Bitcoin combined with the rampant printing of money by Federal Reserves around the world would contribute to the appreciation in the value of the world’s leading cryptocurrency. Gold and the U.S Dollar are two stores of values that have been hugely devalued this year.

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Minerd said that based on research work that has been carried out, Bitcoin already should be trading at $400,000. However, that may take a while before it happens. In explaining his stand on the valuation of Bitcoin, Minerd told Bloomberg Television:

According to a blog post from Rain, the exchange is now the first Middle Eastern cryptocurrency company to earn a regulatory license. Rain obtained the Crypto-Asset Module (CRA) license from CBB after completing the bank’s two-year regulatory sandbox program.

It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.

Minerd made his assertion known on the same day Bitcoin breached $20,000 for the first time, bringing its 2020 gain to approximately 200%. Bitcoin proceeded to hit a new high of $24,209.66. Today Bitcoin trades at $22,700.01.

Institutional Investors Are Backing Bitcoin

In recent months, cryptocurrencies have seen the highest interest it has received from investment management companies. Guggenheim is among the many institutional investors dipping a toe in the crypto world.

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In November, the firm announced it had filed a right to reserve and invest as much as 10% of its $5.3 billion Macro Opportunities Fund in the Grayscale Bitcoin Trust, which invests solely in Bitcoin. Grayscale is currently hinted to be one of the fastest-growing asset managers in the known history of finance.

In December, British investment management firm, Ruffer Investment announced that it had invested a total of $740 million in a bid to reduce its exposure to gold.

Only a Matter of Time

Minerd’s perception about Bitcoin’s value is shared by many known investors including Paul Tudor Jones, who said earlier this year he has been buying Bitcoin as a hedge against what he explained to be faster inflation after years of muted consumer-price increases.

While the claims of Bitcoin being valued at $400,000 may not seem feasible at the time, Bitcoin’s appreciation in value is a certainty. Already, we have seen an increasing interest from institutional investors and piles of wealth being moved from Gold and invested in Bitcoin: all affirming Bitcoin’s growing dominance as tomorrow’s store of value.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia