Investor Predicts that Bitcoin Could Hit $700,000

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John Pfeffer, a partner at his London-based family office Pfeffer Capital, predicts Bitcoin prices

A member of the annual Sohn Investment Conference recommended on Monday on investing in Bitcoin which happened for the first time in the event’s 23-year history.

John Pfeffer, a partner at his London-based family office Pfeffer Capital, not only placed a bet on Bitcoin but gave it a bold price mark of $700,000—about 75 times the present Bitcoin price of nearly $9,500.

Though Pfeffer did not mention the time frame on his prediction, his target beats even positive forecasts from other prominent investors such as venture capitalist Tim Draper, who shortly this month predicted the Bitcoin price would reach $250,000 by 2022.

Pfeffer, addressed the crowd at the Sohn Investment Conference at New York’s Lincoln Center, saying:

“Bitcoin is the first viable candidate to replace gold the world has ever seen. So if Bitcoin becomes the dominant non-sovereign store of value, it could be the new gold or new reserve currency.”

But Pfeffer has bigger hopes for Bitcoin—that it could ultimately be to central banks what traditional foreign reserve currencies are today.

Pfeffer said at the conference:

“It’s imaginable that Bitcoin displaces some form of reserves over time.”

According to Pfeffer, Bitcoin will fully replace all the foreign reserve currency which is worth $12.7 trillion. Pfeffer also molded scenarios in which Bitcoin would reckon for a quarter of foreign reserves, which would imply a 20x return from current prices. And if the total value of Bitcoin rises to the equivalent of all foreign reserves, or $12.7 trillion—including both gold bullion and reserves together—then that would lead to a Bitcoin price of $700,000.

Pfeffer stated:

“As an investor, what interests us most at this point is that Bitcoin might become the dominant non-sovereign currency.”

Although he puts just 1% odds on Bitcoin hitting $700,000, the possibility alone is sufficient for him “to make a small, venture capital-style, buy-and-hold long-term bet on,” he said.

Putting it another way, Pfeffer said, his plan is:

“Buy the ticket, take the ride.”

In addition to Bitcoin, Pfeffer previously tinkered with investing in other cryptocurrencies over the past two years, but since then he carved his crypto portfolio back to just Bitcoin again. He realized that many other cryptocurrencies besides Bitcoin don’t function as simply money, but as so-called utility tokens—meaning, the coins are used to achieve a specific operation and serve as something other than a pure currency.

Nishanth Shetty

Nishanth Shetty is a technical writer, author and a crypto-advisor working at Cryptofame. Based in the city of dreams, Mumbai, on the west coast of India. He holds a bachelors degrees from Mangalore University. Nishanth has a myriad experience of technical writings for tech brands. His interests include technology, travel, and food.