As of late November 13, the respective market values of bitcoin and gold were roughly $2 trillion and $29 trillion. That confirms the cryptocurrency would need an epic long-term rally to close the gap with the yellow metal.
Throw in the point that gold ETFs have recently outshone funds such as the CoinShares Valkyrie Bitcoin Fund (BRRR) and some investors may think traditional gold is the better bet than digital gold. But don’t be hasty in ignoring the largest digital currency and ETFs like BRRR. That’s because, despite recent downside, they could again have their days in the sun.
Not surprisingly, Strategy (MSTR) CEO Michael Saylor is in the “bet on bitcoin” camp. In a recent interview during Yahoo Finance’s Invest event, the noted bitcoin bull said that by 2035, the largest digital currency could be worth more than gold. That implies that in the span of about a decade, the cryptocurrency could notch a 14-fold increase from current levels. Obviously, that would deliver huge benefits to investors holding ETFs like BRRR.
If Saylor Is Right, BRRR Looks Great Long Term
Skeptics may say that Saylor has previously floated audacious bitcoin forecasts that have yet to prove accurate. They say he does so because his company is the world’s largest corporate owner of the digital currency. A recent slide in Strategy shares has taken the firm’s market cap below the value of its bitcoin holdings.
“Saylor’s bullish outlook comes after prices for bitcoin, smaller digital assets, and crypto-linked stocks such as Strategy have seen a fierce correction since mid-October, with billions of dollars in leveraged positions within the crypto derivatives market unwinding in recent weeks, according to data tracked by aggregator CoinGlass,” reported David Hollerith for Yahoo Finance.
Saylor’s thesis that bitcoin will eventually surpass gold in market capitalization implies that based on today’s market caps, the cryptocurrency would need to rise to $1.4 million to be more valuable than bullion. That’s a massive jump. But even if Saylor is half right, implying bitcoin eventually gets to half gold’s market value, that means long-term BRRR investors would still be handsomely rewarded.
Again, Saylor is an unabashed bitcoin bull. He’s never shy about making his feelings known on the matter. But investors considering BRRR and other crypto-correlated assets should note that he does put Strategy’s money where his mouth is. The company recently bought another 487 bitcoin, bringing its holdings to 3% of total circulating supply.
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