Why This Hedge Fund Manager Calls Bitcoin Better Than Gold

TLDR

• Hedge fund manager Mark Yusko predicts Bitcoin’s market cap will grow from $1.8 trillion to $15 trillion, an eight-fold increase
• Yusko calls Bitcoin “a better form of gold” due to its scarcity, portability, and divisibility
• VanEck projects Bitcoin could reach $53.4 million per coin by 2050 in a “hyper-Bitcoinization” scenario
• VanEck’s base case estimates Bitcoin at $2.9 million per coin by 2050 with a 15% compound annual growth rate
• Both forecasts assume Bitcoin will capture significant shares of global trade and potentially match gold as a reserve asset

Two major financial forecasts have projected massive future gains for Bitcoin, with price targets reaching as high as $53.4 million per coin by 2050. The predictions come from hedge fund manager Mark Yusko and global asset manager VanEck.

Mark Yusko is the founder and chief investment officer of Morgan Creek Capital Management. He appeared on the Coin Bureau podcast on January 7 to discuss Bitcoin’s future.

Yusko stated that Bitcoin’s market cap will rise from its current $1.8 trillion to $15 trillion over time. This represents more than an eight-fold increase in value.

He described Bitcoin as “a better form of gold.” Yusko explained that Bitcoin shares gold’s scarcity but offers better portability and divisibility.

The hedge fund manager expects short-term price declines for Bitcoin. However, he believes market corrections will lead to more money printing by governments.

This money printing will drive funds into Bitcoin, according to Yusko. He argued that governments devalue currency by printing more to fund expenditures.

Bitcoin’s fixed supply of 21 million coins makes it immune to this devaluation. Yusko stated that the cryptocurrency market has completed 10 years of a 30-year adoption cycle.

VanEck released separate projections showing even higher potential prices. The asset manager’s bull case forecast sees Bitcoin reaching $53.4 million by 2050.

This scenario assumes Bitcoin captures 20% of international trade and 10% of domestic GDP. VanEck calls this outcome “hyper-Bitcoinization.”

VanEck’s Multiple Price Scenarios

For the bull case to materialize, Bitcoin would need to match or exceed gold as a global reserve asset. The cryptocurrency would represent nearly 30% of world financial assets in this scenario.

VanEck’s base case is more conservative but still bullish. The firm projects Bitcoin at $2.9 million per coin by 2050 with a 15% compound annual growth rate.

In the base case, Bitcoin would represent 5-10% of global trade and 5% of domestic transactions. Bitcoin was trading at $90,319 as of the report’s release.

This means Bitcoin would need to increase roughly 3,100% to reach VanEck’s base case. The bull case would require an increase of more than 59,000%.

VanEck first released similar projections in 2024. The firm’s 2024 bull case was $52.3 million per Bitcoin, slightly lower than the current forecast.

The base and bear case projections have remained mostly unchanged since 2024. VanEck’s forecasts assume growing acceptance of Bitcoin as a legitimate asset class.

Long-Term Adoption Timeline

Yusko suggested an even more extreme scenario beyond his $15 trillion prediction. He said Bitcoin could potentially become the world’s universal monetary unit.

In that case, Bitcoin’s market cap could reach $120 trillion to $150 trillion. Yusko cautioned this outcome would take considerable time to materialize.

Both Yusko and VanEck base their predictions on increased Bitcoin adoption. They expect the cryptocurrency to play a larger role in global finance over the coming decades.

Bitcoin launched in 2009 as the world’s first decentralized cryptocurrency. It currently has a market cap of $1.8 trillion, making it the largest cryptocurrency by value.

Bitcoin was trading at $90,505.20 at the time of Yusko’s podcast appearance. The cryptocurrency has experienced price swings throughout its history but maintains its position as the dominant digital asset.

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