Scott Minerd, Chief Investment Officer of asset management and investment advisory firm Guggenheim Investments, believes Bitcoin is severely undervalued.

In a video published by Bloomberg TV on Wednesday, Minerd shared that the firm had "started allocating toward Bitcoin when Bitcoin was at $10,000," adding that he was 'amazed' at "how big of a run-up we've had" over a short period of time.

Bitcoin crossed $20,000 for the first time on Wednesday, marking a new all-time high for the asset. At press time, Bitcoin is trading above $20,700 on Bitfinex.

Guggenheim Investments counts over $233 billion in assets under management. The size of the firm's Bitcoin position is unclear.

Following up on his comments, Minerd told Bloomberg, "our fundamental work shows that Bitcoin should be worth about $400,000."

He justifies this valuation based on Bitcoin's scarcity, as the total number of bitcoin is finite at around 21 million, over 18.5 million of which have already been mined. Minerd further cites Bitcoin's relative valuation when compared to gold, of which he says "Bitcoin has a lot of the same attributes [...] and at the same time has an unusual value in terms of transactions."

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