According to Mark Yusko of Morgan Creek in an interview of his CNBC’s “Power Lunch,” the reason behind the $250,000 Bitcoin price prediction came as a surprise.
Mark Yusko, founder, CEO and CIO at Morgan Creek Capital Management
Here’s how Bitcoin price could hit $250,000
“The $250,000 number is not just pulled out of the air. That is gold equivalence, the monetary value of gold equivalence”, he told the long-time host of the show, Melissa Lee, that the top cryptocurrency would be able to get to that pie-in-the-sky price point if it were to reach the level of gold.
Accordingly, the total market capitalization of gold is about 10 trillion dollars. While jewelry and other industrial use cases account for nearly half of that, the other half is the monetary value of the glossy metal.
Yusko said that Bitcoin would easily reach gold parity within four years, translating into about a quarter of a million dollars per coin.
After retrieving $60,000 on Sunday, BTC is heading south again, dropping to an intraday low of $55,870 earlier today on the Bitstamp exchange. Bitcoin hit an all-time high of $69,044 on November 10.
Last month, Yusko backed his bullish thesis by pointing out Bitcoin’s finite supply is capped at 21 million coins. “We know every day for the next 140 years how many bitcoin will be minted through the mining process”, he stated.
Back in 2019, Yusko forecast that Bitcoin could hit $450,000 in the long term.
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