- Bitcoin is approaching 2017 levels, its price is now above $ 18,000.
- Greg King of Osprey Funds explained to us why he still thinks the cryptocurrency has greater upside potential, saying venture capitalist Tim Draper’s forecast of $ 250,000 is “possible”.
- Visit the Business Insider home page for more stories.
In 2017, the price of bitcoin rose to nauseating levels. Then it collapsed.
After closing at $ 876 on January 2, 2017, it began its journey towards its all-time high price of $ 19,783 in December of that year, before returning to $ 3,000 over the next 12 months.
Now, the price of the cryptocurrency is going up again. It currently stands at over $ 18,000.
This is due to factors such as an increase in institutional investors in the space, greater demand and increasing normalization of the asset – PayPal, for example, recently announced that it will allow cryptocurrency transactions on its platform.
Some fear the hype is overblown, however, and that a repeat of bitcoin’s Icarus-like drop will occur.
But according to Greg King, CEO of Osprey Funds, while the cryptocurrency may see its price drop in the short term, it still has plenty of room to function over the long term. King has been creating cryptocurrency investment products, such as Osprey Bitcoin Trust, since 2016.
“I think you might see a pullback because it’s been a big rush, but in the grand scheme of things, I still think there is still a long way to go in terms of potential upside for bitcoin,” King told Business Insider on Wednesday.
Bitcoin’s bulls have made eye-catching predictions for its price trajectory. Billionaire Mike Novogratz told CNBC on Wednesday that it could hit $ 60,000 by the end of next year. Venture capitalist Tim Draper said bitcoin will rise to $ 250,000 by 2023, a prediction King said is “possible”.
Although King refused to share his price target for bitcoin, he explained why he is set to grow over the next decade.
Because Bitcoin is poised to grow for years to come
For one, King pointed to impending inflation and the all-time high money supply that currently exists following massive monetary and fiscal stimulus this year.
“The money supply is exploding, and at the end of the day that can’t happen without inflation,” King said. “On the contrary, bitcoin is a finite tool. There will be no more bitcoins ever created. They are coming online predetermined due to mining and how it works. And at some point perhaps along the way it could even become deflationary.” .
King also said that the growing normalization of the cryptocurrency and incorporation into the economic infrastructure that contributed to its skyrocketing price in recent days is set to continue.
He added that this will only increase the demand for the asset.
“The fundamental case for bitcoin is there, and I think the access ramps are under construction,” he said. “So it looks like the arrows are pointing to significant additional investments coming into space, and due to the limited amount of bitcoin available, only the supply-demand balance will tend to push prices higher over time.”
Investors looking for exposure to bitcoin without trading the cryptocurrency directly might consider products like the Grayscale Bitcoin Trust (GBTC).
The other cryptocurrency that’s here to stay
While King is more focused on bitcoin, he said Ethereum, the cryptocurrency with the second largest market cap, is here to stay.
“We believe Ethereum is a platform that is here to stay and has enough infrastructure to support a potential long-term investment. The mere fact that they have mobilized such a large ecosystem makes us think Ethereum is here to stay this point.” King said.
He added: “They have competitors – there are definitely other platforms looking to improve what Ethereum has built. But it’s the second largest cryptocurrency in terms of market cap for a reason.”
Investors looking for exposure to Ethereum might consider the Grayscale Ethereum Trust (ETH).
