Investors are already excited due to the Bitcoin price rally. With the way things stand now, there is no doubt that Bitcoin is on the path to breaking its all-time high record in 2020. However, analysts and investors are still trying to figure out how high the crypto will go. The founder of Gold Bullion International, Dan Tapiero, believes that it could reach a six-figure price peg pretty quickly. Speaking to Antony Pompliano, the co-founder of Morgan Creek Digital, Tapiero said that BTC was on the path to hitting the $500,000 mark. The gold aficionado believes that investors should divide their assets between Bitcoin and Gold.
He also acknowledged that the leading crypto remains the cream of the group when it comes to alternative investments. Tapiero highlighted that he could see gold hitting $4,000 in the next five years, which was double its price. But, if gold reaches $4,000, then Bitcoin would be somewhere between the range of $300,000 and $500,000, which is a 20x or 30x increase. He said that Bitcoin’s dominance couldn’t be disputed by anyone in the gold industry. Tapiero also said that there had already been an influx of institutional investment in the Bitcoin market. As the market capitalization of the asset continues to grow, more institutions will begin to feel comfortable with investing in it.
This could result in a cycle of greater investment in Bitcoin, which would contribute to a higher value. When this happens, Bitcoin will be able to achieve the same position as gold. The gold bug also added that Bitcoin was far superior than gold in terms of functionality. While gold is indeed a store of value, Bitcoin, on the other hand, is a complete network. Tapiero said Bitcoin could use this greater functionality to eventually outperform gold. This acknowledgment by Tapiero was a big moment, especially considering that a lot of people are drawing comparisons between gold and Bitcoin.
Last week, Black Rock’s Chief Investment Officer, Rick Reider told CNBC that Bitcoin wasn’t going anywhere and would end up replacing gold. Even though he didn’t declare himself a Bitcoin bull, Reider also said that Bitcoin’s functionality was higher than gold, which would help it in taking gold’s place. Similar to Tapiero, he had also highlighted the increase in institutional demand for the pioneer cryptocurrency. He had also talked about the asset’s appeal towards millennials, who would become the prominent investors of tomorrow. As more millennials choose Bitcoin instead of gold, it wouldn’t be long before they end up switching places.
While Tapiero didn’t have a problem in accepting and acknowledging Bitcoin’s superiority, a prominent gold bull Peter Schiff, is not so eager to do so. Schiff has increasingly criticized Bitcoin this year, even though it has managed to prove him wrong a number of times. Last month, data indicated that Bitcoin had managed to reach the 7-ounce mark for the first time against gold this year. However, Schiff hadn’t been impressed by this performance and had referred to Bitcoin as the largest bubble ever seen.