Mark Yusko, the billionaire investor and founder of Morgan Creek Capital, went on Bloomberg News to defend his prediction that Bitcoin will be worth $400,000 in the long term. Yusko’s now-famous prediction made headlines because of its grandiose scale, and the Bloomberg desk staff had questions.
First, when asked about the question of Bitcoin vs. Blockchain technology, Yusko was quick to point out that ‘Bitcoin is a Blockchain,’ and that the argument for having one and not the other was a non-sequitur. He then responded to the question regarding his price point prediction by comparing Bitcoin to gold. He said:
“It’s just math. It is gold equivalent…there are about 20 mln Bitcoin available today. Gold today is about $8 tln. That gives you $400,000. And that doesn’t include use cases that relate to currency.”
Striking fear
The investor also pointed out that the asset is striking fear into the hearts of bankers precisely because Bitcoin eliminates the need for banks. When transactions are verified on a Blockchain, banks become obsolete. He said:
“All the bank people should be deathly afraid of this. It has the potential to displace the need for banks as a trust institution…it has the potential to disrupt the banking sector as we know it.”