Having boldly called Bitcoin to reach $5,000 per coin by the end of the year, renowned stock picker and founder of Standpoint Research Ronnie Moas has had to re-evaluate his prediction as the digital currency hurtles towards that figure halfway through August.
In the wake of Bitcoin’s record-breaking rise in value during the first half of this year, Moas has had to re-evaluate his prediction and has raised his target to $7,500 as the likely price for the cryptocurrency to reach by years end. The new target, a 50 percent increase over his previous prediction, came about after Bitcoin hurtled past $4,000 last week.
The Floodgates are Opened
Moas, the founder of Standpoint Research, says that there will be an influx of big, traditional investment money that will be driving the next surge towards the year’s end. In an interview with CNBC, Moas said:
What’s happening is the floodgates are opening. I believe there are hedge funds and very deep-pocketed individuals going into this now, really hundreds of millions of dollars
Moas told his clients that his expectation is that Bitcoin can still rise another 80 percent from its current record breaking high by the end of the year. Furthermore, he has also re-evaluated his 10-year prediction and now sees Bitcoin rising to a whopping $50,000 by 2027 – a 28 percent annual compounded growth rate.
— Ronnie Moas (@RonnieMoas) August 14, 2017
Traditional Investors are Taking Note
Having always been involved, successfully, in traditional stocks, Moas now sees these traditional investors exploring cryptocurrencies, bringing with them loads of capital. Moas sees digital currencies becoming part of strategic reserves and asset allocation models in the near future.
“You can’t look at this as a normal situation,” he said. “We’re in an industry that will probably go from $140 billion to $2 trillion and the Bitcoin price will probably move with that.”
Moas is a true advocate of Bitcoin, having stated before that 100 percent of his investments are in digital currencies, with the majority in Bitcoin and Ethereum. In the past, he would never invest in any of the stocks he picked, regardless of their success.
Moas has lofty ideas as to where cryptocurrencies can go, and instead of seeing a bubble about to pop, the stock picker believes it is just the start.
In a note to his clients on Monday, Moas wrote:
Any way that I look at these numbers, my forecasts are looking conservative. It looks to me as though we are at the same point in the adoption curve as we were in 1995 when we went from one million internet users to ten million. The following year the Netscape browser came online and we went from 10 million users to hundreds of millions of users overnight.
I expect that within a couple of years we will have between 50 and 100 million cryptocurrency users — up from approximately ~10 million today. We only have 0.15% market penetration right now — if that goes to 2 percent or 3 percent we will get to the $50,000 price target that I set in July.
Are these figures too high? Can Bitcoin really become such a valuable asset over time? Let us know in the comments below!
Images courtesy of Wikimedia Commons, AdobeStockShow comments