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.
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Furthermore, a possible Bitcoin boom could come as the result of firms offering securitized products that feature Bitcoin as the underlying asset. To Gurbacs, Bitcoin would need to meet three tests in order for the digital currency to integrate itself into the capital markets–pricing benchmarks, liquidity and regulatory support.
“We believe that there is sufficient liquidity, we believe there are pricing benchmarks and we believe that there is a way to integrate Bitcoin into the financial ecosystem that we are used to for ETFs, stocks, bonds and commodities,” said Gurbacs.
Meanwhile, the leading cryptocurrency is priced at $7,383.18 as of 3:00 p.m. ET–down 0.64% the past 24 hours, but still up about 8.7% within the past month.
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