One of the distinguished figures in the crypto landscape, Mark Yusko, the CEO at Morgan Creek Capital Management, appeared on CoinDesk TV’s First Mover offering some startling projections for the world’s largest cryptocurrency, Bitcoin. He made a bold assertion predicting that by 2028 Bitcoin might amass a staggering $300,000 in value.
Yusko hinged his forecast on an interesting comparison between Bitcoin and gold, two assets often weighed against each other. The lack of portability and divisibility are two aspects where gold falls short compared to Bitcoin. On the other hand, Bitcoin, being equally scarce, outmanoeuvres these constraints. Grounding on this very foundation, Yusko contemplates that Bitcoin could balance out gold’s monetary valuation, currently standing at roughly $6 trillion.
According to Yusko’s calculations, for Bitcoin to reach an equivalent monetary value to gold, it would require an almost 10X boost from its current status. This would guide the path for Bitcoin reaching the mammoth $300k yardstick. Further, Yusko correlates this assumption with Bitcoin’s halving process expected to initiate by 2028.
For those less familiar with the term “halving”, it’s a systematic method applied every four years to control the rate of new Bitcoins entering the market. In this process, the reward that miners reap from mining a block is reduced by 50%, thereby constricting the blockchain’s supply economics. This is generally perceived as inflation resistant, benefitting Bitcoin’s price movement.
Yusko further backs his prediction citing formerly exhibited patterns following each Bitcoin halving event. Drawing from this trend, he anticipates Bitcoin to touch $100,000 by the subsequent halving in April 2024.
His bullish stance echoes the sentiment of other market experts and institutions who’ve recently expressed flourishing prices for Bitcoin. Among them, Standard Chartered, the British multinational bank, foresees Bitcoin reaching $120,000 by this year-end. Similarly, Crypto services provider, Matrixport, envisages Bitcoin’s price soaring to $125,000 by the culmination of 2024.
However, Yusko’s optimistic forecast hasn’t overlooked Bitcoin’s volatility. Bitcoin currently sits at $29,300, suffering a drastic 64% slump from its high this year. Thus, while Yusko and his fellow bulls paint a promising picture, the choppy waters of crypto markets remind us to remain watchful about the unpredictability that often comes hand-in-hand with these assets.
Source: Coindesk
