The Bitcoin (CRYPTO: BTC) price is down 3% since this time yesterday, currently trading for US$45,378 (AU$59,865).
That gives the world’s original crypto a market cap of US$862 billion.
Despite a strong run in March, which saw the Bitcoin price surge 20% over the month, the token remains down 34% from its 10 November record high of US$68,790.
But those highs may not only be retested but they could also be left in the dust.
That’s according to Anthony Scaramucci, founder of Skybridge Capital and likely best known for his brief stint as the communications director for former United States President Donald Trump.
Can the Bitcoin price really top US$500,000?
Scaramucci, aka the Mooch, addressed the Australian Financial Review Cryptocurrency Summit earlier today.
He had previously forecast that the Bitcoin price would leap to US$100,000, which he admitted hasn’t panned out. At least, not yet. The Mooch said that the global pandemic, Russia’s invasion of Ukraine and US regulators’ failure to approve a cash Bitcoin exchange traded fund (ETF) had been a drag on the crypto world.
However, he said he still believes in the “elasticity of this situation and the likelihood of [Bitcoin] prices heading to a half a million dollars”.
That’s about AU$658,000. It’s also some 1003% higher than the current Bitcoin price.
So why is the Mooch so bullish on the outlook for the world’s biggest crypto?
It comes down to his belief that cryptos are the future of money.
“You want to get in here ahead of the curve. If you’re not long crypto, you’re effectively short it,” he said.
Scarce supply and soaring demand
Scaramucci also pointed out the relative scarcity as likely to support the Bitcoin price. The total number able to be mined is capped at 21 million. 19 million have already been virtually created, with several million lost and likely gone for good.
“We don’t even have enough coins for each millionaire in the world to own one full coin,” he said.
That scarcity comes as demand for cryptos is soaring.
As the AFR noted, 18 months ago there were roughly 80 million digital wallets holding Bitcoin. That number has since ballooned to 247 million.
According to the Mooch, we can expect to see 1 billion digital wallets holding Bitcoin within 2 years.
“Ladies and gentlemen, we’ve reached escape velocity,” he said. “We are just getting started in the world of crypto – imagine where we’ll be in five years.”
If Scaramucci has this one right, in five years we may be in a world where the Bitcoin price has hit US$500,000.
The post Can the Bitcoin price really top US$500,000? appeared first on The Motley Fool Australia.
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More reading
- What’s the outlook for the Bitcoin price in April?
- Why cryptos like Bitcoin are ‘no longer in the fringes’
- Another crypto is buying $13 billion of Bitcoin. Here’s why
- Here’s what moved the Bitcoin price 20% higher in March
- Here’s what ESG investors should know about cryptos like Bitcoin
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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