Standpoint Research founder Ronnie Moas recently restate his bullish take on bitcoin, and said that he sees the cryptocurrency’s price reach $20,000 in the next three years as, according to him, we are still only at the tip of the iceberg.
In fact, Moas predicts that the bitcoin’s market cap will reach as much as $2 trillion in the next 10 years, a very bullish prediction taking into account today’s $161 billion. Behind his forecast is, per his own words, a direct parallel between the cryptocurrency market and the “dot-com” boom of the 1990s. He notably stated:
“I am not any more concerned with Bitcoin being at a record high than Amazon or Google investors were concerned when those share prices jumped hundreds of percent and hit $100 and $200 many years ago. Today, both of those stocks are above $900. The question is not where we are at — it is where are we going? I do not think we are in a bubble.”
According to CoinDesk, to get to the $2 trillion market cap, Moas starts by looking at the $200 trillion currently invested in global capital markets. He believes stocks are overvalued as, according to him, three-quarters of the names in S&P 500 are trading above the threshold of 12 times their earnings. Plus, he added that we haven’t seen a correction in the stock market in over a year and a half.
Moas also pointed out that, for most people who don’t have access to the U.S. dollar – which has been losing value – the case for cryptocurrencies is very compelling. The market analyst used Venezuela, a country in which people survive government failures thanks to bitcoin and other cryptocurrencies, as an example.
“Now, imagine what they think of their own local currencies elsewhere in the world. Imagine you live in Venezuela and you’re keeping your money under the mattress. Would you rather leave it there in Venezuelan bolivar or would you rather put it in bitcoin? It’s not going to take you very long to make that decision.”
Moas estimates that one percent of the $200 trillion tied to cash, gold, stocks and bonds will in the course of the next decade migrate to cryptocurrencies. This would mean investors would get a 1,250 percent return on their cryptocurrency investments made today, and that bitcoin would be bigger than Amazon and Apple combined, CoinDesk notes.
However, Moas noted that if a cryptocurrency bubble does exist, it is outside of the top 50 cryptocurrencies, as there are over 800 names out there, and 91 percent of the cryptocurrency market cap is invested in only 20 of these.
Ronnie Moas, who’s made over 900 stock recommendations in the past 13 years and recently decided to venture into the cryptocurrency world has, in the past, made other bullish predictions. Notably, Moas predicted that bitcoin’s value would double in the next year, and that one single coin could be worth between $25,000 and $50,000 in the next decade.
Recently, after bitcoin hit the $4,000 mark, Ronnie Moas stated that the cryptocurrency would reach $7,500. His initial July prediction, that pointed to bitcoin reaching $5,000 “in a few months” so far proved to nearly be correct, as at press time the cryptocurrency is trading at $4,383.80, according to CoinMarketCap.