Hypothetically, 1 BTC Will Be Worth $300k-400k USD – Says Coinsuper CEO
In an exclusive Q&A with Karen Chen, the co-founder and CEO of leading digital asset exchange Coinsuper, we asked what she thought about Bitcoin (BTC) and crypto in general being used as a hedge against the traditional stock markets and an impending global recession.
After all, US debt continues to rise to insane levels, and the S&P 500 keeps reaching new all-time highs for over 10 years now, which marks the longest bull market in over 100 years of the stock market’s history.
It’s only sensible for investors to hedge against a potential economic recession.
Is Bitcoin a Hedge Against Other Financial Assets?
According to Chen, Bitcoin and crypto are not yet being used as a hedge against other financial assets, because crypto’s market cap (US$250 billion) is still very small. In comparison, gold’s market cap is close to $8 trillion and is, therefore, more likely to be considered to be a hedge against other assets.
However, she notes that Bitcoin does have the potential to get as big as gold:
“Hypothetically, if/when Bitcoin’s market capitalization grows to the size of gold’s, 1 BTC will be worth $300k-400k USD (more than 75x from this very point).”
Furthermore, Chen says that the currency Bitcoin/crypto investment landscape is for people with the right appetite of risk, who understand Bitcoin’s potential as well as its risk. She says that millennials will be the driving factor that moves traditional value from gold into digital gold, aka Bitcoin (BTC).
This she says, can potentially be very disruptive and result in a tremendous uptick of Bitcoin’s price.
Do you think a financial crisis is looming on the horizon, and will Bitcoin and crypto help to hedge against it? Let us know your thoughts in the comments!
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