VanEck Sees Bitcoin Doubling Against Gold to $500,000
VanEck's Head of Blockchain Research, Matthew Sigel, believes that Bitcoin (BTC) has room to double against gold, with the current Bitcoin-to-gold ratio at a multi-year high. Sigel points to the ratio, which measures how many ounces of gold one Bitcoin can buy, currently at around 16-17, down from its prior peak of 40.
This ratio, Sigel says, leaves room for Bitcoin to double against gold, potentially reaching a price of $500,000. VanEck uses half of gold's market capitalization as the 'north star' for Bitcoin, which Sigel believes could happen this cycle or the next.
Sigel also addresses the risks associated with quantum computing, which could potentially break the current encryption algorithms used in Bitcoin. However, he doesn't think this is a reason to sell Bitcoin, and instead believes that the benefits of Bitcoin's decentralization and security outweigh the risks.
In contrast, Ark Invest's Cathie Wood shares a bullish view on Bitcoin, but reads the relationship between Bitcoin and gold differently. Wood notes that Ark's study found little to no link between the two assets since 2019 and that it has recently turned negative.