Institutional investment in Bitcoin could raise the price of the cryptocurrency to $ 500,000, according to Skybridge Capital COO Brett Messing – unless the currency remains a niche asset.
“Bitcoin is a super niche asset that trades between $ 500 and $ 50,000, or is well over $ 500,000,” Messing told Decrypt, adding: “It is difficult for me to see how $ 150,000 makes sense for that".
Skybridge Capital is an investment advisory firm with more than $ 7 billion in assets under management and is managed by former White House communications director Anthony Scaramucci. It launched its Bitcoin fund on January 4, with minimal investments of $ 50,000.
In fact, Messing is so confident in the future of Bitcoin that he believes it will reach $ 100,000 in just over a year. "I will be surprised if we do not reach more than US $ 100,000 in the next 15, 16 months," he added.
But the price of half a million dollars depends on whether institutional investors continue to buy Bitcoin or not. If institutions continue to buy Bitcoin, Messing said the price will exceed the $ 150,000 range and will do so easily.
“It's hard for me to see how you can justify Bitcoin for being worth $ 150,000, because it doesn't get there without the institutions, so they stop buying? Morgan Stanley is going to buy for its customers, but not Goldman Sachs? It doesn't seem possible, ”he said.
In August last year – when Bitcoin was worth about $ 11,000 – MicroStrategy announced its first investment in cryptocurrency. The company's $ 250 million initial purchase is widely understood to kick-start a new wave of institutional investors who are pushing the price of Bitcoin up. And despite all the currencies on offer, they seem mainly focused on Bitcoin.
Skybridge COO compared Bitcoin's dominance in the cryptocurrency market today with Dell's dominance in the emerging computer market in the 1990s.
"Well, don't look and say 'well, Compaq is cheaper', no, no, go buy the leader. In all cases – regardless of the rating – if you buy the leader, you will have been richly rewarded, ”he said.
He pointed to the dominance of Bitcoin's market capitalization, which currently stands at 63%, arguing that this trend will continue.
* Translated and edited with authorization from Decrypt.co