Mark Yusko, CEO of U.S. investment firm Morgan Creek Capital Management, assessed that Bitcoin’s fair value is approximately $105,000 and that its current price is undervalued.
In an interview with Bitcoin Magazine TV on the 16th, Yusko said Bitcoin’s current fair value based on Metcalfe’s law was approximately $105,000. He said Bitcoin was trading at about $75,000 at the time and described it as being “discounted,” expressing the view that undervalued assets should be bought.
Metcalfe’s law is the concept that the value of a network is proportional to the square of the number of users. Yusko said a model operated by Timothy Peterson tracks this relationship and presented Bitcoin’s fair value based on that model.
Yusko also argued that holding assets capable of preserving value is more important than investing in companies over the long term. He said 85% of companies disappear over 30 years, and that gold has historically served as a store of value for approximately 5,000 years. He added that gold and Bitcoin can now serve that role.
Sources
- Bitcoin Magazine