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Bitcoin (BTC) might have fallen into hard times, but the bearish trend hasn't stopped bullish voices from forecasting new record highs.
Launched in 2009, Bitcoin is the world's first decentralized cryptocurrency. With a market capitalization of $1.8 trillion, BTC is the world's largest cryptocurrency.
As per a veteran hedge fund manager, its market cap will surge eight times over time.
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Mark Yusko is a hedge fund manager who is the founder and chief investment officer of Morgan Creek Capital Management.
On Jan. 7, he appeared on the Coin Bureau podcast and talked at length about the present and future of Bitcoin.
Yusko said the adoption of Bitcoin will increase for a range of reasons, including currency devaluation.
Bitcoin maximalists frequently refer to it as "digital gold," as both the cryptocurrency and the bullion are scarce and are considered hedge assets against inflation in the face of currency devaluation.
Yusko went a step further and said,
“Bitcoin is a better form of gold."
Bitcoin is equally scarce as gold and is more portable and more divisible, he added.
"It’s just a better form of money, and money is different than currency."
Yusko argued that a government takes a currency from individuals by printing more and more to fund their expenditure.
Bitcoin, a scarce currency, therefore can continue to remain valuable.
Yusko said he will argue that Bitcoin will go down in the short run. But over the long run, the market correction will lead to more money printing.
As more money gets printed, it gets injected into Bitcoin, he argued.
The total market cap of Bitcoin will ultimately continue to rise, Yusko asserted.
In fact, its market cap will rise from nearly $2 trillion currently to $15 trillion, he predicted.
"That’s a no brainer."
To be precise, Bitcoin's market cap stood at $1.8 trillion when he made the remark. So, the figure will surge more than eight times over time.
Next, it is possible that Bitcoin could become the world's ubiquitous monetary unit, he said. Then, the market cap could reach $120 trillion-$150 trillion, he added.
Bitcoin will not reach this level anytime soon and will take time, he explained.
Yusko argued that the market has completed 10 years of a 30-year Bitcoin adoption cycle.
"So we just finished the first early adopter cycle.”
Bitcoin was exchanging hands at $90,505.20 at the time of writing.
