While speaking during the 23rd annual Sohn Investment Conference, the Hedge fund manager in Pfeffer capital, John Pfeffer, gave his views on Bitcoin. Therefore he said that Bitcoin had the viability of replacing Gold and he considered it better than this precious metal. This is according to the report made by Market Watch on 23rd April.
Upon appearance on the CNBC Fast money on April 24th, Pfeffer made a confirmation about the prediction he made that Bitcoin would rally to not a value lesser than $90,000 and also go ahead to achieve a high of $700,000. Therefore he further added that Bitcoin and the other cryptocurrencies should be considered as venture capital investments. However, they could drop to zero but on the other hand, they could be worth more.
The further explained the so-called “Low bar” estimate at the $90,000 level which would hold if BTC “became equal to private gold bullion holdings, about $1.5 trillion of total value compared to $150 billion or thereabouts today.”
Therefore he explained that the bitcoin price would attain the seven hundreds of thousands if and when the cryptocurrency would be considered a reserve currency. However, this would be possible but less probable. During his second speech, he gave a ballpark figure and stated that in case Bitcoin displaced 25% of the major foreign reserves, the value of the network would amount to $6.4 trillion.
“Gold frankly is rather silly. We’re a spacefaring, digital society and we’re still using a yellow metal as our non-sovereign store of value, at some point we’re going to come up with a better technology to do that, and Bitcoin is the first candidate, we’ll see if it works.”
He further made an emphasis that he could not foresee whether Bitcoin would be used in coffee purchasing in the developed countries but was certain that for the countries suffering collapsed currencies, Bitcoin would be much more important for their daily uses.
Therefore, he said that the forecasted value of $90k would be attained in the next few years only if the private sector would come into the institutional investment. However, his remarks are directly linked to the Winklevoss Twins remarks in 2016 that Bitcoin is “better at being gold than gold” itself.