Bitcoin ‘should be worth’ $400,000 says Guggenheim CIO. On Wednesday, Guggenheim Partners Chief Investment Officer Scott Minerd shocked Bloomberg TV hosts when he said his firm’s fundamental analysis shows bitcoin should be worth $400,000.
Minerd said “Our fundamental work shows that bitcoin (BTC, +14.33%) should be worth around $400,000,”. “Whoa!” responded one of the hosts. According to Minerd, the sky-high price target is based on two things: the scarcity of the commodity and its relative value to gold as a percentage of the gross domestic product.
“Bitcoin has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions,” Minerd told Bloomberg TV. Guggenheim decided to start allocating to bitcoin when the leading cryptocurrency was trading around $10,000, Minerd said.
Minerd said allocating to bitcoin, given its current price above $20,000, is “a little more challenging.” Guggenheim Partners manages more than $230 billion worth of assets.
[image: Jurg Kradolfer]