- Bitcoin is approaching its 2017 levels, with its price now sitting above $ 18,000.
- Greg King of Osprey Funds told us why he still thinks the cryptocurrency has more upside potential, saying that venture capitalist Tim Draper’s $ 250,000 prediction is “possible.”
- Visit the Business Insider homepage for more stories.
In 2017, the price of bitcoin hit nauseating highs. Then he collapsed.
After closing at $ 876 on January 2, 2017, it began its journey towards its all-time high of $ 19,783 in December of that year, before falling back to $ 3,000 over the next 12 months.
Now the price of cryptocurrency is leaping again. It is currently over $ 18,000.
This is due to factors such as an increase in the number of institutional investors in the space, increased demand, and increasing asset standardization – PayPal, for example, recently announced that it will allow crypto transactions. -currency on its platform.
Some fear that the hype is overdone, however, and that a repeat of Bitcoin’s Icarus-like fall could occur.
But according to Greg King, CEO of Osprey Funds, while the cryptocurrency can see its price drop in the short term, it still has a lot of wiggle room in the longer term. King has been creating cryptocurrency investment products – like the Osprey Bitcoin Trust – since 2016.
“I think you might see a pullback because it’s been a big run, but in the grand scheme of things I still think there’s a long way to go in terms of upside potential for bitcoin,” King told Business Insider on Wednesday. .
Bitcoin bulls have made some eye-catching predictions for its price path. Billionaire Mike Novogratz told CNBC on Wednesday that by the end of next year, he could reach $ 60,000. Venture capitalist Tim Draper said bitcoin would hit $ 250,000 by 2023, a prediction King called “possible.”
Although King declined to share his own price target for bitcoin, he explained why it is destined for growth over the next decade.
Why Bitcoin is poised to rise in the coming years
On the one hand, King pointed to the coming inflation and unprecedented money supply that currently exists following massive monetary and fiscal stimulus this year.
“The money supply is exploding and, ultimately, that cannot happen without inflation,” King said. “Conversely, bitcoin is a finite instrument. There are no more bitcoins that will ever be made. They are brought online in a predetermined way due to mining and how it works. And at some point, maybe it could even become deflationary. “
King also said the increasing standardization of cryptocurrency and its integration into the economic infrastructure that has contributed to its price spike in recent days should continue.
He added that this will only increase demand for the asset.
“The fundamental bitcoin case is there, and I think the ramps are being built,” he said. “So it looks like the arrows point to significant additional investment in space and due to the limited amount of bitcoin available, only the balance between supply and demand will tend to drive prices up over time.
Investors looking for bitcoin exposure without directly trading the cryptocurrency might consider products like the Grayscale Bitcoin Trust (GBTC).
The other cryptocurrency that’s here to stay
While King mainly focuses on bitcoin, he has said that Ethereum – the cryptocurrency with the second highest market cap, is here to stay.
“We believe Ethereum is a platform that is here to stay and that has sufficient infrastructure to support a potential long-term investment. The mere fact that they’ve mobilized such a large ecosystem makes us think Ethereum is here to stay at this point, ”King said.
He added, “They have competition – there are certainly other platforms looking to improve on what Ethereum has built. But it’s the second-largest cryptocurrency in terms of market capitalization for a reason.”
Investors looking for Ethereum exposure might want to consider the Grayscale Ethereum Trust (ETH).