[2017-10-19] Stock Market Bear Sets $1 Million Bitcoin Price Target

[cybersofts]

Hedge fund manager Mark Yusko forecasts that the bitcoin price has the potential to reach $1 million over the long term as the network effect leads increasing numbers of investors to use it as a store of value in place of traditional commodities such as precious metals.

Yusko, who founded Morgan Creek Capital Management and serves as the firm’s chief investment officer, is noted for his bearish outlook on the stock market. Earlier this year, he predicted that the U.S. economy is “going to have a crash and it will be massive.”

Anticipating a coming recession, he believes actively-managed funds will outperform passive index funds that track the S&P 500 or other major indices, which is one reason why he accepted Warren Buffet’s offer to conduct a decade-long wager pitting an S&P 500 index fund against a basket of hedge funds, even though the last investor who took that bet is slated to lose by a considerable margin. Buffet, 87, has since withdrawn the offer for a second wager, citing his age.

One alternative investment that Yusko believes provides hedge funds a leg up on index funds is bitcoin. In a recent tweet, he revealed that his long-term bitcoin price target is $1 million. He explains that this is a best-case scenario that will take more than a decade to reach, and he says a more conservative “base case” scenario for the bitcoin price is $500,000 — which would represent an 8,800% increase from its current level. Based on current factors, including the assumption that privately-managed blockchains will not supplant the role of public blockchains like bitcoin, he believes there is a 75% likelihood that the bitcoin price will reach $500,000 within the next 20 years.

This forecast is one of the most attention-grabbing bitcoin price predictions made by a mainstream investment officer, as most have preferred to set short- and mid-term price targets. However, Yusko feels comfortable that the network effect — the phenomenon whereby a commodity’s value increases as more people use it — has already begun to set bitcoin on the path to a six-figure valuation. Specifically, he points to the increasing trend to use bitcoin as a store of value that is easier to manage than a stockpile of precious metals.

Because this bitcoin price target provides investors with such tremendous upside, he encourages them to invest 1% of their assets into bitcoin today and allow that percentage to increase as the network effect “works its magic”.


Source: https://www.cryptocoinsnews.com/stock-market-bear-sets-1-million-bitcoin-price-target/

[bbc.reporter]

Impossible unless a good portion of the world's money supply is used to pump it to that level. But we also did not anticipate bitcoin to reach beyond $1000 from only a few cents 5 to 6 years ago. Let us leave it to the market to take it where it wants to take it.

[1Referee]

Impossible unless a good portion of the world's money supply is used to pump it to that level. But we also did not anticipate bitcoin to reach beyond $1000 from only a few cents 5 to 6 years ago. Let us leave it to the market to take it where it wants to take it.

This market will change for good when institutions are going to heavily invest in Bitcoin at some point, and if that's the case, we'll be up for at least $100,000 per unit. Don't forget that something has been happening throughout the years, which basically follows the similar pattern of how things go in the fiat world, and that's the rich getting richer, and the poor getting poorer. Whales have had massive feasts where they have been fed cheap coins by noobs and other gamblers for years and years. In other words, more and more coins are landing into stronger hands, which has had a tremendous positive impact on the market. If this continues to happen in the forthcoming years, and there is no reason to believe otherwise, this market will continue to increase significantly, even without insitutions entering this market.

[iamTom123]

Hedge fund manager Mark Yusko has all the experience necessary before making such a forecast so this projection is not claiming something out of thin air. He is a professional and am sure he has already dealt with many investment tools or vehicles in his career that is why it is exciting to learn that he is very positive about Bitcoin unlike Mr. Jamie Dimon who has nothing to say positive about our coin.

I believe that there is nothing really impossible with Bitcoin as it would be surging and surging into higher levels most especially in 2018 where we might be seeing less big problems and challenges for the cryptocurrency market in general. Though we also have to listen to some warnings about Bitcoin, getting positive about it is the way to go for the future.

The future belongs to Bitcoin and Bitcoin belongs to the future...but it is already happening today!

[entrepmind23]

Well if this would happen then lucky for us to be able to get in while price is not that high. Looking at the demand of bitcoin now and given the limited supply, it is possible that price of $1 Million could be achieved given that there will be no FUD that would make the investors shift their attention to other investment option. Bitcoin is an attractive investment now because of the huge returns one can generate in a short amount of time and as more investors money come in, the higher the price but then due to the new people coming in still having doubts, there is a huge volatility happening which is also an advantage to the traders having many trading opportunities to have a favorable position.

[panju1]

The question is how long is the long-term? If the price is going to reach 7 figures when I am 6 feet under the ground, it is going to help me. On the other hand, if 20 years is long-term, a lot of people could fund their retirements using Bitcoin.

[buwaytress]

I'm as huge an amateur proponent of Bitcoin as it gets, but to call $500,000 a conservative base against a best-case scenario of $1 million in by 2037 is by no means conservative in any case! Still, I suppose this is what you call a smart move in raising his profile. If Bitcoin continues today's trend in the next five years, Yusko's reputation will only be made stronger - more clients, more funds, lucrative networking effect. If it doesn't, everyone will quickly forget about it. Forward 10 and 20 years, and either scenario puts him in good standing.

1% is definitely what hedge funds are recommending now, from the strategy letters I've seen since April. That's probably a lot to do with this year's upwards pressure too, in my opinion.

[gentlemand]

Impossible unless a good portion of the world's money supply is used to pump it to that level. But we also did not anticipate bitcoin to reach beyond $1000 from only a few cents 5 to 6 years ago. Let us leave it to the market to take it where it wants to take it.

It's all to do with the supply level. It's being treated like an asset not a currency. If people can afford it and believe the price will keep on rising then they'll more reluctant than ever to sell.

The genuinely daft price predictions become a lot less daft if sellers go on strike.

[darkangel11]

Impossible unless a good portion of the world's money supply is used to pump it to that level. But we also did not anticipate bitcoin to reach beyond $1000 from only a few cents 5 to 6 years ago. Let us leave it to the market to take it where it wants to take it.

I've learned to treat everything as possible and never rule out anything. It all depends on the circumstances.
There are several things that might push BTC towards 1 million. Some of those are:
-bankruptcy of some huge international banks
-a number of countries accepting it as a national/reserve currency
-hyperinflation of USD

[richardsNY]

It looks quite unreasonable at this point, but we can somewhat compare current demand/usage with how things were back in the $1 Bitcoin days. Currently it's the average joe that is slowly rolling himself into Bitcoin, but at some point we can almost guarantee that institutions will take over this market, and at the same time provide much needed liquidity. Whales have constantly followed the OTC path when it comes to acquiring large numbers of coins at a fixed price, but that has to change -- these entities need to able to cash out and enter with large positions at any time. Regulations will help in attracting these institutions to hop on board. From there I don't think $1,000,000 in the far future is very unreasonable.