Jan Van Eck, CEO of global investment manager VanEck, believes the value of one bitcoin could skyrocket to as high as $250,000, but the quarter of a million dollars prediction could take decades to happen.
Bitcoin at $250k Could Take a Decade
The VanEck CEO made the bullish price prediction in a recent interview with Barron’s but noted that it was difficult to say precisely when the bitcoin price would hit $250,000. Van Eck’s prediction comes amid the general crypto bear market.
Bitcoin has been struggling to stay above $30,000, continuously slipping below the mark. Meanwhile, other prominent individuals apart from Van Eck have also made bold BTC price predictions.
Back in January, ARK Invest’s research team said that one BTC could be valued at $1.36 million by 2030. Major bitcoin proponent and CEO of MicroStrategy, Michael Saylor, is optimistic that the cryptocurrency price could reach $1 million in the future.
Jan Van Eck, also a bitcoin supporter, said the value of BTC has the potential to appreciate further because it is a maturing asset.
The executive added that Bitcoin has also seen increased adoption from institutional investors and governments interested in the asset. El Salvador and the Central African Republic are the two countries that have made BTC a legal tender.
Speaking on gold, which has not seen significant upward movement in two years, Van Eck mentioned that bitcoin taking up part of the demand for the precious metal is one of the reasons for its sluggish price performance.
However, the VanEck chief believes that “gold will do better when everyone is worried about a global recession and asking when the Fed will cut rates next. Until then, gold has had some headwinds.”
Van Eck Owns Bitcoin and Ether
Van Eck also said investors should allocate a maximum of three percent of their portfolios to BTC while revealing that his bitcoin exposure is higher because of the strong conviction he has about the asset. The CEO has also owned ether since 2019, stating that it was sensible to have a diversified portfolio.
On the issue of spot Bitcoin exchange-traded funds (ETFs), Van Eck said:
“The SEC doesn’t want to approve a Bitcoin ETF until it gets jurisdiction over the underlying cryptocurrency exchanges, which has to happen through legislation. And in an election year, it’s unlikely that legislation will happen. I am excited that there are bipartisan conversations about what that legislation should look like.”
VanEck was one of the first companies to apply for a spot-based Bitcoin ETF. However, the US SEC delayed and rejected the asset manager’s several applications. But the regulator approved the firm’s Bitcoin futures ETF proposal back in October 2021.
Featured Image Courtesy of MarketWatch
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