The CEO of VanEck, a renowned financial institution, holds a strong belief that Bitcoin’s market capitalization will eventually reach half of gold’s market capitalization. In an exclusive interview with Scott Melker, Jan van Eck, the CEO of VanEck, stated that it could take around ten years for traditional finance (TradFi) to contribute to Bitcoin’s market capitalization reaching an impressive $7.85 trillion.
Currently, the market capitalization of gold stands at approximately $15.7 trillion, while Bitcoin’s market capitalization is around $1.36 trillion.
Van Eck expressed, “I predict that Bitcoin will eventually reach at least half the market capitalization of gold. However, I believe this will take another five or ten years. Our TradFi clients still find Bitcoin perplexing, and they are hesitant to discuss it. However, their clients demand that they address it. So, we still have a long way to go. Additionally, their buying behavior is not conducive to growth. They tend to buy at the peak and then panic when it hits rock bottom, assuming it will plummet to zero. Therefore, their allocation strategies are flawed…”
In the United States, numerous firms, including those in Europe, manage portfolios for individuals. Van Eck hopes that these portfolio managers will be open-minded enough to consider gold or Bitcoin at the opportune moment in the market cycle. He desires them to be disciplined in leveraging these trends to benefit their clients, as he has given up hope that end clients will fully understand the potential of these assets.
Furthermore, Van Eck believes that there is a growing demand among international investors to own Bitcoin due to its independence from the Society for Worldwide Interbank Financial Telecommunication (SWIFT). He stated, “Investors outside of the United States are increasingly seeking to distance themselves from SWIFT and the political influence that accompanies the US financial system.”
As of the time of writing, Bitcoin is trading at $69,020, experiencing a nearly 2% increase in the last 24 hours.
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Disclaimer: The opinions expressed in articles published by The Daily Hodl do not constitute investment advice. Investors should conduct their own research before engaging in high-risk investments involving Bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and trades are conducted at your own risk, and any losses incurred are your sole responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor is it a financial advisor. Please note that The Daily Hodl participates in affiliate marketing.
