According to Scott Minerd of Guggenheim Partner, the majority of digital currencies will fail in the coming period. Minerd also thinks it is not the right decision to bet against Bitcoin’s recent rise at the moment. Details are here.
“Seventy percent of coins are garbage and they’re going to go,” Minerd said in an interview with Bloomberg Television on Tuesday, adding that while many object to the idea, he is not bullish in the cryptocurrency space.
“The question is, which of the companies survives, just like the internet bubble. Will Amazon or Pets.com be the big winner?”
For those who don’t know, Pets.com was an Amazon-style internet purchasing system where users ordered pet supplies from the website and the company arranged delivery. Pets.com was one of four online pet stores to emerge during the dot-com bubble. Dot-com companies like Amazon and eBay quickly adapted and survived the crash, but others like Pets.com went bust within months. At this point, Minerd drew attention to which coins will be Amazon and which ones will be pets.com.
Additionally, Minerd made his comments the same day as the launch of the first Bitcoin futures exchange-traded fund, the ProShares Bitcoin Strategy ETF. He said that it is an accessible trading tool that facilitates the work of institutional investors who want to enter the cryptocurrency market.
The billionaire investor noted that stocks are bullish after bottoming out last week and that these moves “splash” to other asset classes such as cryptocurrencies:
“You see what Bitcoin has done in the last few weeks. I wouldn’t say it’s a value, but I’m not going to tell you that you should go short either because it will likely be higher in the coming months.”
He also said that based on its limited supply and value relative to gold, the Bitcoin price still has the potential to rise to $400,000 for December.
In Tuesday’s session, Bitcoin rose nearly 2% to over $63,000 and approached the all-time high of $64,863 reached in April.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.