„Risk-free investment product“ – Bloomberg sees Bitcoin at 400,000 US dollars
Bloomberg certifies Bitcoin an important development step that could still carry the cryptocurrency to a price of 400,000 US dollars by the end of 2021.
Bitcoin (BTC) has repeatedly faced accusations of being too volatile or fluctuating in price. This would result in a high risk when investing in the cryptocurrency. However, a senior Crypto Engine scam analyst at Bloomberg now confirms that Bitcoin has become a „risk-free“ investment product this year.
In a corresponding tweet on 25 March, Mike Mcglone of Bloomberg Intelligence states that the current year represents a turning point in the cryptocurrency’s development that finally legitimises it.
US$400,000 before the end of the year
To back up his optimism, McGlone attaches a price chart in logarithmic representation to his tweet, showing the Bitcoin Liquid Index and the average Bitcoin price per year.
From the price developments during the major uptrends of 2013 and 2017, he deduces that Bitcoin could reach a peak of 400,000 US dollars in the current record run (upper green line). This makes McGlone’s forecast even significantly more optimistic than the much-cited Stock-To-Flow (S2F) calculation model, which predicts a Bitcoin price of 288,000 US dollars by 2024.
„Bitcoin is well on its way to becoming a global reserve asset. A maturity jump in 2021 transforms Bitcoin into a risk-free investment product, in our opinion,“ the expert said in light of the promising outlook.
McGlone, however, does not give any specific reasons for Bloomberg’s assessment. However, the idea that Bitcoin reduces rather than increases the risk of a portfolio is already getting around in the corporate world. More and more companies are adding the cryptocurrency to their books, unimpressed by any price fluctuations.
„My mission is to correct the books of the entire corporate world,“ as Michael Saylor, the CEO of MicroStrategy states accordingly in an interview with TIME Magazine this week. The software maker is something of a bitcoin pioneer among large companies.
Saylor, for example, kicked off a veritable trend last summer by investing more than $52 billion in the market-leading cryptocurrency with his company by now. According to Bitcoin Treasuries, the BTC purchased with it are now worth more than 73 billion US dollars. A worthwhile decision that is now slowly setting a precedent.
Even the major bank Morgan Stanley will allow wealthy investors and corporate clients access to Bitcoin from next week. Critics see the conditions imposed by the bank as an indication that the cryptocurrency is not entirely free of risk.
„The fact that Morgan Stanley only allows wealthy investors with more than 2 million US dollars in their accounts to invest 2.5% of their assets shows that the bank considers Bitcoin to be very risky and wants to limit its legal liability for any losses,“ as gold advocate and crypto critic Peter Schiff concludes.