Yusko: Bitcoin's Built-In Escalator Will Drive Long-Term Value Appreciation
Morgan Creek Capital's founder and CEO Mark Yusko believes Bitcoin is still undervalued despite its growing adoption. In an interview, he said that BTC's long-term appreciation is built into the network due to its programmed supply schedule.
Yusko pointed out that as new supply decreases, adoption expands, which creates a 'built-in escalator' for the price of Bitcoin. He cited a model from Timothy Peterson, estimating Bitcoin's fair value at around $105,000, saying it's currently undervalued by about 30%.
Yusko also discussed the four-year cycle of Bitcoin, where long-term investors accumulate below perceived fair value, traders arrive as momentum builds, miners hedge once prices exceed production costs, and leveraged speculation eventually pushes prices above fundamentals. He expects a sharp correction in the final stage.
The CEO believes that Bitcoin's adoption is growing, moving from the 'fringe' through early adopters and now toward the early majority. He sees it as a store of value and better form of money due to its scarcity, portability, and divisibility. Yusko also mentioned that Oct. 5 marks 364 days since the previous cycle peak, which could signal a return to the accumulation phase.