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Bitcoin’s Price is a Lie, Says Morgan Creek Capital Chief
The price of Bitcoin has dropped by more than 18% in the past 30 days. Predictions that the world’s original crypto would top US$100,000 by the end of the year are beginning to look optimistic, to put it diplomatically. Yet Mark Yusko, chief executive and investment officer at Morgan Creek Capital, is holding firm in his belief that Bitcoin will be worth US$250,000 within the next five years. He says Bitcoin’s price, as denominated in U.S. dollars, is bunk. “It’s interesting that in the short run, when prices fall, as they have in the last few weeks, people start to get a little antsy and start to question these long-term trends and fundamentals,” Yusko told Forkast.News in a video interview. “Price is a liar.” In terms of Bitcoin’s actual value, the truth lies in gold, Yusko said, asserting that fiat currencies can conceal changes in real value. Watch Yusko’s full interview with Forkast.News Editor-in-Chief Angie Lau to learn more about the secular and cyclical dynamics of Bitcoin, the impact of Bitcoin futures ETFs on the market, how investors should distribute wealth in the crypto space, and upcoming opportunities in 2022. 00:00 Introduction 01:42 What is Bitcoin doing? 08:00 The global Bitcoin market 25:03 Bitcoin’s disruptions 34:47 Too late to buy Bitcoin? 41:32 Bitcoin risks and threats 49:50 Hidden opportunities in Asia? 56:42 Goodbye 2021, hello 2022 — HIGHLIGHTS Bitcoin’s secular dynamics: “One Bitcoin is one Bitcoin, and it will always be one Bitcoin. But you and I don’t buy Bitcoin in Bitcoin. We buy it in something else — we buy it in dollars, we buy it in yen, we buy it in euros. If we look at the price of Bitcoin in dollars, it’s materially higher today than it was at the beginning of the year. It’s materially higher than it was a year ago, or two years ago, or 10 years ago, or at the inception. That’s not necessarily because Bitcoin got better. It did become more broadly adopted, but more importantly, the dollar continues to get worse, or the yen continues to get worse, or the euro continues to get worse. That global race to the bottom is the secular trend that’s going to push prices higher, along with these halving cycles.” Bitcoin is borderless: “[Switzerland has] actual spot-based (Bitcoin) ETFs … and so that’s increasing demand for Bitcoin as money flows into that ETF. Canada has that, as well. There’s one about to launch in Australia. That’s positive for the ecosystem — that increases demand for physical Bitcoin, increases participation. It increases that network effect and it gives us rise to that Metcalfe’s Law parabolic curve that we’ve all seen, where the value of the network rises proportionally to the square of the number of participants in the network. But it’s such a globalized world — again, American exceptionalism: we think we drive everything in the world and Bitcoin, but we’re really, like, 25% of the market — and there’s still activity in all these big markets around the world, including China.” Everything will be tokenized: “What’s happening here is that we’re going to go through a period where these innovations around digital scarcity are going to apply to everything … All US$700 trillion of assets in the world are going to be tokenized, digitized, and they’re going to trade in this tokenized form and non-fungible tokens… ‘Oh, they’re just funky JPEGs’? No, no, no, no — everything will be an NFT. Your identity, my identity, my marriage license, my driver’s license — everything that I own, every piece of title, every piece of art — it’ll all be an NFT.” Don’t follow the money: “There’s the stock-to-flow model that everybody talks about that (pseudonymous analyst) Plan B created, and now everybody is all upset because he said it would be US$100,000 by the end of November, and it’s not. That means the model is broken. I say, ‘No, that just means price is a liar.’ The model is still accurate. It just means now the price is undervalued relative to the value. That [model] is about 95%, 96% correlated. The most highly correlated is actually the value of Bitcoin related to gold. How many ounces of gold does it take to buy a Bitcoin? That’s 99% correlated.” — #Crypto #Blockchain #BlockchainTechnology #DigitalAssets #Cryptocurrency #DeFi #Bitcoin #Gold #Currency #ETF #Innovation #Digitization #Tokenization #NFT #Stocks — MORE WORD ON THE BLOCK INTERVIEWS: https://youtube.com/playlist?list=PLENVHIZFjdMT-q2_LSNncbuoS_LGiuLz2
