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Bitcoin will reach half the market capitalization of gold, VanEck CEO predicts
Jan Van EckCEO of an investment management company e spot issuer of the Bitcoin ETF VanEckexpected Bitcoin (CRYPTO: Bitcoin) the future could eventually reach a market capitalization equal to at least half that of gold.
What happened: In a interview with Scott Melker, predicted that this milestone could take another five to 10 years to reach.
“I say [Bitcoin will] they will eventually become at least half of gold’s market capitalization. So I think it will take another five to 10 years,” VanEck said.
This optimistic forecast underlines his long-term confidence in Bitcoin, despite current skepticism among traditional financial customers.
Van Eck highlighted the confusion and hesitation that many traditional finance (TradFi) customers still feel about Bitcoin.
“Our TradFi clients are still very confused about Bitcoin and don’t want to talk about it, but their clients make them talk about it,” he noted.
This suggests that, while institutional acceptance is growing, there is still a significant learning curve and resistance to overcome.
One of the challenges, according to van Eck, is the poor timing of buying activity by investors.
“They want to buy it at the highs and then it will go to zero at the lows. And so they are terrible at allocating,” she said, underscoring the need for better investment strategies and discipline.
Read also: Why Bitcoin is Stuck in a Range and What Could Change It: 10x Research
In terms of portfolio allocation, van Eck stressed the importance of financial advisors and allocators being open-minded.
“My hope is that allocators are open-minded enough to consider gold or Bitcoin at the right time in the cycle and disciplined to take advantage of those trends for their clients,” he explained.
He expressed skepticism that end customers can grasp Bitcoin’s potential on their own without guidance.
Van Eck also highlighted the growing trend among international investors looking for alternatives to the US financial system.
“Investors outside the United States increasingly do not want to be tied to SWIFT, the US financial system and the political control that comes with it,” he said, highlighting a shift in global financial dynamics.
What’s next: Industry leaders like Jan Van Eck will talk about the state of digital asset adoption at Benzinga The future of digital assets event on November 19th.
Read next: Iggy Azalea’s MOTHER meme coin makes a dramatic return following launch controversy
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