Bitcoin bull Jan van Eck, CEO of $80.4 billion asset manager VanEck, believes bitcoins – which has seen a slight downturn lately – will hit $250,000. One caveat, though: van Eck suggests that achieving such a price could take decades. If this is indeed the case, does this further strengthen the case for investors to include crypto in their retirement portfolios?
Bitcoin was hovering around $30,000 on June 9, down 56.1% from its all-time high of $69,044 reached on November 10, 2021, according to CoinGecko.
Garry Krugljakow — founder and CEO of GOGO Protocolan open source DeFi protocol for asset management and savings – however told GOBankingRates that he was extremely skeptical of anyone giving price predictions for bitcoin.
“I’ll listen to VanEck CEO more than crypto influencers tweeting that bitcoin will hit $1 million by 2030, but I’m skeptical either way,” Krugljakow said.
“I’m not saying he’s wrong – I think it’s plausible that bitcoin was worth $250,000 mid-century – but the CEO of a company with a lot of crypto assets has his own motives. to go to the media and talk about how well he thinks bitcoin is going to do,” Krugljakow said, adding that “[I] recommend bitcoin to most people I know, and think it’s great for retirement accounts because the growth potential is so high in the long term…but don’t buy bitcoin because CEOs tell you how much it is valuable, buy it because you believe in bitcoin’s mission.
VanEck, who applied for a bitcoin exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC) in March 2021, is still waiting — as are many of his peers — for approval. VanEck says adding bitcoin to a portfolio can potentially increase diversification due to its low correlation to traditional asset classes, including broad stock indices, bonds, and gold. The VanEck Bitcoin Trust’s investment objective is to mirror the performance of the MVIS CryptoCompare Bitcoin benchmark rates, according to the ETF’s prospectus.
Now, company CEO van Eck has told Barron’s that the SEC doesn’t want to approve a Bitcoin ETF “until it gets jurisdiction over the underlying cryptocurrency exchanges, which has to happen.” do so through legislation. And in an election year, legislation is unlikely to happen. Van Eck remains extremely bullish on crypto, however, telling Barron that “investors see it as a complement to gold. That’s the short version. Bitcoin has a limited supply; the supply is visible. And it’s very difficult, almost impossible, to change that.
“Bitcoin will go to half the market cap of gold, or $250,000 per bitcoin, but that could take decades. It’s hard to put a timeline on that,” he added.
Other Crypto Experts Weigh in on Bitcoin as a Retirement Asset
Some industry experts believe that bitcoin should be looked at holistically to determine whether or not it is suitable for a retirement plan.
“You need a longer time horizon when investing in bitcoin than in other traditional or crypto assets, which actually makes it well suited for retirement accounts,” Anthony Georgiades, co-founder of the protocol. NFT infrastructure. pastel network, told GOBankingRates. Georgiades added that bitcoin has the potential to increase in value over time, but you shouldn’t expect it to rise as dramatically and as quickly as it has in the past.
“However, I think it has finally stabilized after the recent downturn and matured as the crypto market has matured,” he said. “Despite its recent performance, bitcoin is a long-term asset with serious opportunity to strengthen society, and if you have the time and patience, you have the potential to see returns on your investment, in more ways than one. title.”
Other industry insiders think bitcoin is a good retirement asset or not depends on how far you are from retirement.
Mahin Gupta, founder of Liminal, told GOBankingRates that if you are already retired or about to retire, bitcoin may not be the best option for you. Gupta said price volatility means that if you plan to withdraw a regular amount from your account each month, the amount of bitcoins required can vary wildly.
“Still, bitcoin has generally increased in value over its lifetime, so if you’re going to buy, that’s when prices are low,” Gupta said. “After all, if you buy now, your investment will do well whether you sell bitcoin at $60,000 or $90,000. However, for anyone under 50, bitcoin absolutely belongs in a retirement account. With markets seemingly bottoming out, bitcoin is a relatively low-risk asset with huge upside potential.
Gupta added that “Global adoption by financial institutions and countries is accelerating, not slowing – bitcoin may be downbut it is far from over.
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Bitcoin Bull Says BTC Could Hit $250,000 in Future – Should You Buy While Planning for Retirement?
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