Speaking to Bloomberg, experienced stock picker Ronnie Moas recently revealed that he believes bitcoin’s vlalue is going to double in the next year, and that one single coin could be worth $25,000 – $50,000 in the next decade.
Ronnie Moas, founder of Florida-based investment firm Standpoint Research, has made over 900 stock recommendations in the past 13 years, and has now decided to venture into the cryptocurrency world after, according to his own words, dismissing it since 2013. His venture started with the purchase of “a little bit” of litecoin, bitcoin, and ethereum on Coinbase.
Moas believes that confidence in other investments is going to deteriorate and, as such, more people are presumably going to enter the cryptocurrency ecosystem. He stated:
“There are only 21,000,000 bitcoins in circulation and the world will fight over those 21 million coins as confidence in currency and other investments deteriorates. I have little doubt that 1% of the money in cash, bonds, stocks and gold will end up in cryptocurrencies.”
Moas didn’t rule out the possibility of a bubble, claiming he is “only a bit concerned that there may be a near-term bubble”. Nevertheless, his prediction still stands, as it is based on the demand for bitcoin and in the long run, the stock analyst says there’s potential for triple-digit returns.
His triple-digit statement is based on the fact that, for now, cryptocurrencies are still largely unappreciated, and as soon as they start being picked up on, things could change. He stated that the cryptocurrency’s total market cap is currently about 1% of golds’, and 0.1% of the stocks/cash market. Since a lot of people have gold in their portfolios, and “watching what their gold is doing for them is like watching paint dry”, investors may soon turn to cryptocurrencies.
Moreover, Moas added that the stock market is at an all-time high and as such losses are to be expected when the bullish trend ends.
He concluded that if cryptocurrencies take 1 to 1.5% of the market share away from stocks and currencies, a situation in which a $100,000 investment turns into $1 million or more is a real possibility.
For now, Moas admits that he is only “in the early stages” of his research, and promised to publish a 40-page report on cryptocurrencies next month. According to Zero Hedge, he concluded with a few final words to those who don’t believe in his prediction:
“It will probably be more upsetting to watch it go up another 1,000% (from the sidelines).”
Cryptocurrency’s total market cap has swollen past $100 billion this year and even though bitcoin’s dominance has significantly gone down, this has been attracting equity investors and increasing adoption.
As reported by CCN.com, last week Goldman Sachs’ Chief Analyst also made a bullish prediction, in which he stated that bitcoin could come close to $4,000.
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Last modified: May 21, 2020 9:42 AM UTC