Bitcoin is caught in the midst of a 17.15% uptick the past seven days and according to a VanEck cryptocurrency analyst, its market capitalization could even triple if investors begin to view it as a safe-haven investment allocation like gold or in this case, digital gold.
“So Bitcoin is used as digital gold today,” said VanEck’s Gabor Gurbacs. “It’s a de-risk asset. Basically, if someone wants to outlay systematic risk, then one would go to assets like gold or digital gold–Bitcoin. Investors are looking at adding uncorrelated assets to their portfolios.”
Gurbacs is looking at Bitcoin with respect to capital flows and the outflow of investors from gold, $7 trillion in terms of assets, could spike the price of Bitcoin exponentially–according to Gurbacs estimates, 5%-10% of that outflow from gold could make its way towards Bitcoin.