Bitcoin could hit $420,000 by 2030, says crypto bull

Can Bitcoin Go Higher? Well, Ric Edelman thinks so.

Edelman, founder of the Digital Assets Council of Financial Professionals, joined Street to explain his bull case for cryptocurrency.

Related: Struggling bitcoin company files for Chapter 11 bankruptcy

Full video transcript below:

CONWAY GITTENS: Where do you see bitcoin heading in 2025?

RIC EDELMAN: I see it going higher. I am aware that I am suggesting that by the end of the decade, bitcoin will be $420,000. I believe bitcoin will grow eightfold in the next six years, far outperforming any other asset class. So I’m a firm believer that you should have a 1 or 2 or 3% allocation in your portfolio to bitcoin and ethereum because I think it’s a good diversification tool and you have a very high potential to outperform the markets. And if it doesn’t go well, it’s only 1 or 2% It won’t cause you irreparable financial damage. So I think too many people don’t know enough about it and miss the opportunity available.

CONWAY GITTENS: I’ll come back to the portfolio percentage in a minute, but I can’t let you go give us a big number like that, 420,000 for bitcoin. How do we get there? What is the catalyst to move bitcoin prices from where they are now to your target?

RIC EDELMAN: Well, take a look at the total wealth of the world. If you add up the total value of all the money in the world, the total value of stocks and bonds and real estate and gold and oil, etc., it all adds up to somewhere around seven 7 and 1/2 or $70, $80. trillion worth. We recommend around 2% of assets in crypto. If everyone in the world who owns all these assets allocated just 1% of their crypto portfolio, we would be talking about a $7 trillion capital infusion into the asset class. We know that there are only 21 million bitcoins that will ever be created. 19 million of them so far already have. So you do the simple arithmetic. 19 million bitcoins in 7.5 trillion asset flows.

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That translates to about $420,000 per bitcoin. So we think in the next five years we will see greater institutional commitment. You will see endowments, pension funds, sovereign wealth funds, family offices, hedge funds engaging in asset allocation, including crypto in their portfolios. We are already starting to see that. Half a billion people around the world already own crypto. We see pension funds and endowments already committed. Now that bitcoin ETFs and Ethereum ETFs are available in the market here in us. So as this adoption increases, because the supply is fixed, the increased demand will translate into a radically higher stock price or bitcoin price.

CONWAY GITTENS: So you mentioned the bitcoin price going up, but man, when the price goes down, it really goes down. So what is your sales pitch to customers? Crypto, of course, is a shiny new thing, but the volatility of that thing is over the top. This volatility might be too much for most investors.

RIC EDELMAN: You are absolutely right. This is an extraordinarily volatile asset. He had seven times. It has lost 70% or more of its value. So it’s ridiculously volatile. This is the way it is for any new technology. Return to Amazon. Look at the first 15 years of life. It had the same level of volatility. This is not uncommon in the world of tech stocks, so you have to recognize this fact. You have to decide, as you just pointed out, do you have the stomach for that volatility? Is this something you want to have as part of your portfolio? If you can handle the volatility, if you can be a long-term investor, realizing that ultimately high volatility can translate into high profit while also risking a big loss, that will help you decide whether you should or not to do so. . And it’s a big part of why I only recommend 1 or 2 or 3% Don’t put 10 or 20 or 30% of your money into it. It is far too volatile and too risky. But 1 or 2% I think most people can tolerate that.