Gabor Gurbacs, Director of Digital Asset Strategy with VanEck, argued that there may be plenty of growth potential ahead. While Gurbacs likened crytpocurrency to digital gold, he said bitcoin still has a lot of room to run. To put the market in perspective, gold has a market capitalization of $8 trillion, whereas bitcoin or BTC has a market-cap of about $200 billion.
“There is a 40x growth potential if bitcoin is the new digital gold,” Gurbacs told ETF Trends.
If investors look at bitcoin as a form of currency, bitcoin would currently represent the 25th largest country as based of M1 money supply, or comparable to Ireland, Poland and Russia.
Gurbacs sees bitcoin and other cryptocurrencies as a potential alternative to safe-haven assets like gold.
“Bitcoin is more like digital gold than currencies and a store of value,” Gurbacs added.
Nevertheless, Gurbacs warned that the newly developing asset category is still in the early stages with no wide specific use yet, so there is still considerable risk with the assets.
For more information on the cryptocurrency market, visit our Bitcoin category.