One of the first money managers to see the potential of Bitcoin believes that the top cryptocurrency is likely to reach a market cap of $ 8 trillion.
In a new interview on the Citizen Bitcoin podcast, Andy Edstrom of California-based investment advisory firm WESCAP Group says a long list of factors could boost Bitcoin (BTC) over the next 10 years. These factors include the fear of missing out on speculators, geopolitical events, the devaluation of the fiat currency, and catalytic converters from banks and central governments creating a turning point and “speculative attack” on fiat.
“If I look at the positive case from an investment point of view, I am assuming a 10-year perspective. And I think the overall 10 year valuation that I’m using is about $ 8 trillion and that comes from different buckets, whether it’s shares of gold, shares of fiat, or shares of offshore assets, or any other Store of value easy to dismantle like real estate or new uses that we haven’t thought of yet or that are still under construction.
Whether it’s micropayments or things made possible by Lightning, or Abra or similar systems where you can get synthetic exposure to any asset in the world by simply holding Bitcoin as collateral. So there are all of these areas of benefit. “
Edstrom says that the fact that Fidelity and Intercontinental Exchange, the parent company of the New York Stock Exchange, offer Bitcoin exposure to their institutional clients has legitimized BTC in ways that smaller cryptocurrency companies could never do.
“If I go back across the table to the dark side I come from, the financial institution, I might not care if a company called Xapo or a company called BitGo has“ qualified custody ”. I’m starting to care if Fidelity and the parent company of the New York Stock Exchange are real. In my opinion, that is definitely a shift. So that’s a thing.
Another factor, of course, is price, as you point out. If we roll off the previous all-time high, when we’re back above $ 20,000, that will be a catalyst that some people who are not careful now will be looking for. A decade of the top performing asset that came out in 2019 matters. I think the excuses for ignoring it will fall away over time. “
When asked how he explains Bitcoin to his clients, Edstrom says he is leading them through his vision of the future when Bitcoin continues to outperform other asset classes and break its all-time high.
“One thing I like to do sometimes is turn it around. I say look forward to the future. It’s 2022 or so. And Bitcoin has already broken the price in the six-digit range. And I imagine my conversation with my client and my client says, ‘Okay, do we own Bitcoin?’ No, we don’t own bitcoin. ‘Oh. So a couple of years ago it was the top performing asset of the decade, right? ‘ Yes, that’s right. “And it wasn’t correlated to any other asset, right? It had a correlation of less than 0.2 to the US stock market, overseas developed stock markets, emerging markets, bonds as measured by the Barclays index, gold. ‘ Yes that’s right, it wasn’t correlated. “And the total addressable market was tens of trillion dollars, right?” Yes, that’s right. “And it was investable, right? There were instruments on the market that could be bought. You could buy this on my account right? ‘ Yes, that’s right. ‘So what am I paying you for?’ “
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