BTC could trade for $250K within five years: Morgan Creek Capital CEO

“We are in a bubble and when this bubble pops, it’s going to be the biggest bubble in human history by a long shot,” he said.

The price of a single Bitcoin could trade for as high as $250,000 within the next five years if it becomes a widely accepted global currency, according to Anthony Pompliano, a partner at Morgan Creek Digital Assets. Pompliano laid out a number of scenarios in which the digital coin could eventually trade for tens of thousands of dollars. The analyst said that even a comparatively conservative scenario would see the digital currency trade for $100,000 within the next five years. A scenario whereby Bitcoin is accepted as a widespread global currency, whereby it becomes the dominant store of value with gold and silver, would see it trade for $250,000 in five years, according to Pompliano.

The founder and CEO of Morgan Creek Capital Management thinks that during the next bitcoin market cycle, the asset could rival the market capitalization of gold and be worth more than $200,000.

Speaking on CNBC’s Trading Nation on May 9, Mark Yusco compared the rapid spread of bitcoin to the growth of FAANG companies – Facebook, Apple, Amazon, Netflix and Google.

It’s a network, and networks grow exponentially. This is the fastest network in history to reach a value of $1 trillion, after FAANG, which took 15 to 20 years, depending on the network being looked at.

Yusco’s price prediction is based on the assumption that bitcoin will rival gold in monetary value, a concept borrowed from the gold standard, where a country’s currency or fiat currency has a value directly tied to gold. He said: If the monetary value of gold is $4 trillion, digital gold should reach that amount.

Given that BTC sells for about $59,000 and bitcoin’s market value at the time of writing is about $1.1 trillion, Yusco’s prediction suggests that bitcoin could trade for at least $235,000 in the future.

The investment manager predicted that bitcoin would become the core protocol of the Internet of values, comparing bitcoin to the Transmission Control Protocol/Internet Protocol, or TCP/IP, the standard protocol that allows computers to connect and exchange data on the Internet.

Asked about other protocols or crypto assets such as Ethereum, Litecoin and Dogecoin that have reached historic highs in recent days, he said there is room for more. However, Yusco added that he was not a fan of DOGE:

There are thousands of coins, and DOGE falls into this category, that are really useless, they are just useful tokens with no underlying value or use case, and they will eventually disappear.

At the time of writing, bitcoin was trading 1.7% higher at $59,200, Ethereum reached an all-time high above $4,000, and DOGE dipped down after reaching new highs following Elon Musk’s mention on Saturday Night Live.