On Thursday (May 9), Mark Yusko, the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, talked about Bitcoin, and in particular, gave his prediction for the Bitcoin (BTC) price.
Yusko's comments about Bitcoin during an interview with news anchor Layah Heilpern on BloxLive TV.
The Security Breach at Binance (Announced on May 8) and Possible Impact on the Bitcoin Price
Yusko explained that the theft of over 7000 BTC from Binance's Bitcoin hot wallet only serves to "confirm" Bitcoin's "value thesis" since people generally "don't steal things that don't have value."
Also, he said that this attack points out the need for crypto insurance ("kind of like the FDIC in banking); in the case of this incident, for example, Binance's Secure Asset Fund for Users (SAFU) was able to come to the rescue and save Binance users whose accounts where comprised from financial losses.
Furthermore, Yusko noted that just because banks and people get robbed all the time, it does not mean we should stop using money, and so we should not worry too much about any critics that might use this incident to argue that people should not use crypto because it's not safe.
Future Price of Bitcoin
Heilpern also wanted to ask Yusko to talk more about his prediction (last made during an interview in April with Bitcoin Magazine NL) that one bitcoin could one day in the future be worth as much as $400,000.
Yusko explained that what he meant that in those previous interviews where he talked about the future price of Bitcoin was that if you see Bitcoin as digital gold, since gold has a market cap of around $7.4 trillion, then if Bitcoin one day replaces gold (since it has several advantages over gold, some of which Grayscale Investments has been talking about recently as part of its #DropGold capaign), by dividing $7.4 trillion by 21 million (Bitcoin's total supply), we end up with a future value of around $400,000 for one BTC (of course, the actual result is $352,380 if the number of bitcoins currently in circulation was exactly 21 million, but in reality, it is less than that, and so, Yusko is correct to round up to $400,000 or $500,000).
When will this happen? He is not exactly sure, but he believes it could happen within a decade.
He went on to say that over time, "more people will come into the network" and "more users will use the product."
He ealso xplained that the spot price of Bitcoin is a "liar" since it does not represent Bitcoin's value, and that instead, Bitcoin's value comes from "the number of users on the network" and "the amount of capital that comes in and converts from fiat," and that's why his company remained bullish on Bitcoin and crypto in general.
Featured Image Credit: Photo via Pexels.com