Forget $25,000. Heck, forget $100,000! One Bitcoin bull sees the crypto’s price soaring to as much as $700,000 in the long term.
The bull is John Pfeffer, a partner at Pfeffer Capital. Even his low price for Bitcoin is high. He puts it at $90,000.
While Pfeffer didn’t want to pinpoint a date when either of these price targets would be hit, he explained how they could be hit.
We discuss them here.
Why so bullish?
Pfeffer sees such lofty prices being achieved if one major event, in particular, occurs, and it relates to, of course, more acceptance.
“In the case of Bitcoin, the $90,000 price would be what it would be worth if Bitcoin became equal to private gold bullion holdings.
On the higher end, you can get to higher values if Bitcoin becomes a major reserve currency, i.e. countries begin to take Bitcoin into their reserves. In that case, it could reach several hundred thousands of dollars.”
He admitted that the probability of that happening is low, but that it was “certainly a possibility.
Bitcoin buying as a VC investment
Think of investing in Bitcoin as a venture capital investment, Pfeffer said. When it comes to investing in the crypto, it’s like betting on potential outcomes.
“It’s a bet, it’s a risk that I think is interesting and I would be willing to take it.”
The coffee for Bitcoin theory
Often when people discuss how Bitcoin could replace fiat money in the future, they use the example of people being able to cover their coffee fixes with their cryptos. Pfeffer isn’t a fan of that theory.
He noted that in developed countries like the U.S., there is no screaming need for cryptos like Bitcoin to cover purchases. That’s not the case in developing countries, however.
“In developing countries with collapsed currencies it is more important; and could be more for daily use.”
There are some advantages to having a non-fiat based reserve currency for many countries that would see other countries as strategic rivals, Pfeffer said, adding, “we’ll see if that happens.”
The yellow metal
Pfeffer sees the time as now to look at anything else other than gold as a store of value. And guess, what he sees as the best “anything else?” Bitcoin, of course.
“Gold, frankly, is kind of silly. We’re a digital society and we’re still using a yellow metal as our non-sovereign store of value. At some point, we’re going to have to come up with a better technology for that. And Bitcoin is the first candidate to do that. We’ll see if it works.”
Timing history
About not wanting to pinpoint when the $90,000, and $700,000 price targets could be hit, Pfeffer admitted that wasn’t his thing.
“This is a long-term view. I don’t know how to predict short-term prices in this area. I’m thinking about what will these things be worth when they cease to be pure objects of speculation, but are actually being used in the real economy. That’s years from now.”
He pointed out that it’s mostly retail investors who are buying bitcoins, and that there is “not much institutional investing.”
“I can see private sector, [and] institutional investors helping it get to that price in the next couple years. I don’t want to make time/point estimates because it’s a venture capital bet and venture capital investing is a long-term thing, and yes I think it could be sooner.”
And as far as the higher number of some kind of foreign reserve displacement, “that’s clearly a much longer term thing,” he said.
This article appeared first on Cryptovest
