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Bitcoin will reach half the market cap of gold, VanEck CEO predicts
Jan VanEckCEO of an investment management company and Bitcoin ETF spot issuer VanEckpredicted Bitcoin (CRYPTO: BTC) the future could ultimately reach a market capitalization of at least half that of gold.
What happened: In a interview with Scott Melker, he predicted that this step could take another five to ten years.
“I say [Bitcoin will] will ultimately become at least half of gold’s market capitalization. So I think it will take another five or 10 years,” VanEck said.
These optimistic forecasts underline its long-term confidence in Bitcoin despite current skepticism from traditional financial customers.
Van Eck highlighted the confusion and hesitation that many traditional finance (TradFi) customers still feel towards Bitcoin.
“Our TradFi customers are still very confused by Bitcoin, and they don’t want to talk about it, but their customers make them talk about it,” he noted.
This suggests that although institutional acceptance is increasing, there is still a significant learning curve and resistance to overcome.
One of the challenges, according to van Eck, is the poor timing of buying activities among investors.
“They want to buy it at the top, then it’s going to go to zero at the bottom. And so they are bad at allocation,” he said, emphasizing the need for better investment strategies and disciplines.
Read also: Why Bitcoin is stuck in a range and what could change that: 10x research
In terms of portfolio allocation, van Eck emphasized the importance of open-mindedness among financial advisors and allocators.
“I hope these allocators will be open-minded enough to consider gold or Bitcoin at the right time in the cycle and disciplined to take advantage of these trends for their clients,” he explained.
He expressed skepticism that end customers could grasp the potential of Bitcoin themselves without guidance.
Van Eck also cited a growing trend among international investors seeking alternatives to the U.S. financial system.
“Investors outside the United States increasingly do not want to be tied to SWIFT, the U.S. financial system and the political control that comes with it,” he said, highlighting a shift in global financial dynamics.
And after: Industry leaders like Jan Van Eck to speak on the state of digital asset adoption at Benzinga The future of digital assets event on November 19.
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