Scott Minerd Believes One Bitcoin Should be Trading Around $400,000
On Wednesday, Guggenheim's Scott Minerd believes one Bitcoin should be worth around $400,000, according to MarketsInsider.
Minerd believes the cryptocurrency should be valued at this figure due to its scarcity and value relative to gold. The cryptocurrency was trading above $23,000 on Thursday, bringing its year-to-date return to over 200 percent.
The supply of Bitcoin is limited to 21 million, which also gives it anti-inflationary perks. Minerd believes this scarcity combined with the Federal Reserve's "rampant money printing" should bring the value to $400,000. "Our fundamental work shows that bitcoin should be worth about $400,000," he said. "It's based on the scarcity and relative valuation such as things like gold as a percentage of GDP."
Incoming Senator Cynthia Lummis believe Bitcoin is a better store of value than paper money due to its scarcity. She plans to teach Congress how to use Bitcoin to reduce the US national debt when she assumes office in January.