Jan van Eck, CEO of global investment manager VanEck, has recently said that Bitcoin BTC/USD could rally by around 732% from its current levels to reach $250,000.
However, he has said it could take decades to materialize this figure. He believes ultimately Bitcoin’s market capitalization will be about 50% of gold’s market cap.
“Investors see it as a complement to gold. That’s the short version. Bitcoin has a limited supply; the supply is visible. And it’s very hard, almost impossible, to change that. Bitcoin will go to half the market cap of gold, or $250,000 a Bitcoin, but that could take decades. It’s hard to put a timeframe on it,” Barron’s quoted him as saying.
He added that institutional investors and governments would drive Bitcoin’s price appreciation, and Bitcoin is already establishing itself as a threat to gold’s dominance.
“Bitcoin has further price appreciation because it’s maturing. And its institutional adoption is increasing every year. It isn’t just institutional investors, but also governments worldwide that are looking to it as a useful asset,” he said.
He also said gold was the primary asset, but sometimes people buy silver or other precious metals. People looking for a store of value will look to gold and Bitcoin, he added.
At the time of writing, Bitcoin was trading at $28,612, down 3.5% in the last seven days.