The continual tug-of-war between bitcoin and traditional investment vehicles may soon reach an end. Numerous financial institutions have expressed their interest in cryptocurrency investing, and several figures are coming out in support of the cryptographic digital asset class. Joining the ranks of a bitcoin evangelist is Pfeffer Capital’s John Pfeffer, who recommended bitcoin as a prudent investment choice, instead of gold on April 25, 2018.
In a time where the big players are warming up to the digital asset market, Pfeffer has gone ahead and advocated the digital currency, being the first person to ever do so at the annual Sohn Investment Conference in New York. Speaking at Sohn, an event where institutional investors network and ideate for the best investment advice, Pfeffer extended his thoughts on bitcoin; believing that gold is passé, and bitcoin overpowers the evergreen investment choice.
“Bitcoin is the first viable candidate to replace gold the world has ever seen. So if bitcoin becomes the dominant non-sovereign store of value, it could be the new gold, or new reserve currency.”
In a somewhat optimistic prediction, Pfeffer added that the world’s most significant digital currency has the potential to reach $700,000. He also pointed out that the overall value of bitcoin could be flirting with numbers as high as $6.4 trillion if it were to displace 25 percent of foreign reserves. The current market cap boasts a figure of around $150 billion, with each bitcoin approximately valued at $9,300 at time of press.
The fund manager also admitted that crypto has “substantial risks,” but that isn’t all there is to it. Unlike gold, bitcoin’s utility is not limited to a store of value. In contrast, bitcoin and digital currencies could prove to be a viable alternative in countries whose currencies are struggling.
Non-Believers Turning BTC Investors
George Soros, who famously termed bitcoin as a bubble, is now in the process of investing in the same. Soros, whose family fund is reportedly worth $26 billion, has reportedly given the go-ahead for cryptocurrency to his investment manager, Adam Fischer. Bill Miller, who runs a Wall-Street hedge fund, revealed in December 2017 that 50 percent of his billion-dollar hedge fund was invested in bitcoin, as reported by BTCManager. To fuel faith in digital currencies, Pfeffer has gifted Sohn with ten bitcoins, provided they don’t cash out in the next five years. In his words, “Buy the ticket, take the ride.”
Bitcoin A Lease of Life In Some Countries
A study conducted by Investing.com revealed that interest in cryptocurrencies from countries with struggling economies is continuously increasing. Countries like Venezuela, Kosovo, Lithuania, Belarus, and Georgia are in the top five most interested. In a statement, an analyst at Investing.com, Jesse Cohen, said:
“In addition to cheap [cryptocurrency] mining costs, another thing that the Eastern European countries which appear on this list have in common is that all have gone through prolonged periods of war and recession recently, which has resulted in the poor working class losing trust in government and banks.”
The study proves Pfeffer’s belief of bitcoin being backed by much more than physical value; possibly representing a store-of-trust for humanity.