In an interview with Kitco news, the host of “The Wolf of All Streets Scott Melker predicted that Bitcoin is going to “flip gold” as well as noting that ETF’s will drive the price of Bitcoin to seven figures in a decade or two.
The crypto trader has long been bullish on Bitcoin, in his latest interview stating that Bitcoin will eventually flip gold in terms of market capitalization. His statements base themselves on his beliefs that ETF’s will drive the price of Bitcoin up.
“A lot of risk managers have been doing due diligence for three or four years at the biggest institutions in the world, and we’re talking about sovereign wealth funds and endowments <..> if they put their one or two percent into Bitcoin it is just magnitudes of scale right now for how much money would be pouring in Bitcoin, and we know they really can’t do that without an asset like an ETF.”
Exchange Traded Funds (ETF’s) allow mainstream investors to gain access to the world of cryptocurrency. Bitcoin ETF’s are up – in the U.S the Grayscale Bitcoin Trust, holds $21 billion of investors’ money. Nonetheless, due to regulatory restrictions, domestic ETFs in the U.S are still some way from being able to carry out their function. Foreign ETF’s have provided a way for some investors to access these funds, while the SEC debates the regulation of these domestic funds.
On the future of Bitcoin, Melker added that the deflationary aspect of Bitcoin in itself is reason to believe that in the near future Bitcoin will overtake gold:
“A deflationary asset mathematically proven basically superior to gold in every way shape and form just with the very basic demand and supply with the halving every four years the supply of Bitcoin is cut in half <..> For me, if we are talking about 10 – 20 years down the road, I believe it is easily a seven-figure asset.”
With the cryptocurrency market climbing back to $2 trillion, and a Bitcoin halving on the horizon, the comments by Melker are shared by many. The positive sentiment surrounding Bitcoin, as well as other cryptocurrencies such as Ethereum, comes on the back of the bearish dip that saw many retail investors selling off their positions, and the fear that another bear market would be imminent.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
