Bitcoin Could Reach $ 500,000 In 5 Years, Cryptocurrency Firm Says

0


  • Dan Tapiero founded 10T, a crypto-focused private equity firm.
  • 10T has invested $ 650 million in 11 crypto firms, including Kraken and Ledger.
  • Tapiero revealed his investment strategy and told us he sees bitcoin reaching $ 500,000 within 5 years.

Dan Tapiero likes to draw parallels between the current cryptocurrency market and the dot-com boom of the late 90s.

“It sounds like Amazon ’95 or eBay ’96,” the 53-year-old told Insider in a recent interview. “It’s a very dynamic space, so I made a plan to build a portfolio of businesses and gain more exposure.”

Tapiero launched his crypto-focused private equity firm, 10T, in January of this year. In just nine months, 10T raised $ 750 million in investments and invested 80% of it to build a portfolio of 11 crypto companies.

“At first I thought it would take 12 to 18 months to deploy this capital,” Tapiero said. “We have invested over $ 650 million in this ecosystem; I think no one else has invested so much, but we have done it because we believe there is an opportunity there. “

Tapiero’s 30-year career as a traditional specialist in global macroeconomics has seen him work alongside two particularly high profile hedge fund managers: Steve Cohen and Alan Howard.

Both have recently pivoted to crypto. Cohen has personally invested in quantum crypto trading firm Radkl, while Howard is “bullish” on bitcoin and is one of 10T’s biggest backers, according to Tapiero.

10T invests in the digital asset ecosystem rather than individual cryptocurrencies, and Tapiero has shared several predictions about this larger market with Insider, including the inspiration for his company name.

“10T represents the 10-year 10-year target,” he said. “But we made this prediction when the digital asset ecosystem was only worth $ 300 billion in mid-2019.”

“It is now already worth $ 2 trillion,” he added. “I’m starting to think I’ll have to revise my forecast.”

Bitcoin at $ 500,000

Like Ark Invest’s chief executive, Cathie Wood, Tapiero believes bitcoin could reach a valuation of half a million dollars within five years.

“I am very bullish on bitcoin,” he told Insider. “The current market cap is $ 1,000 billion, I see no reason why it couldn’t reach $ 4,000 or $ 5,000 billion in a few years, and that brings you to $ 400,000 or $ 500,000.”

Tapiero said he is basing these bullish price and market cap predictions on a sentiment that crypto will soon become an integral part of the global financial system.

“Bitcoin itself is an invention akin to the combustion engine or the discovery of electricity,” he said. “There is real math and science behind it – two parties can be trusted and transact without a middleman, it’s a world-changing invention.”

“This could potentially be the value layer for the entire Internet,” he added. “It must be worth at least a few trillions of dollars.”

Tapiero also said he believed the ether could eventually reach $ 20,000 – but told Insider his confidence in the overall market was so strong he didn’t spend a lot of time worrying about crypto. individual currencies.

“I don’t want to talk about outperforming,” he told Insider. “Everything in this space is so exponential in its growth that you come from HODL (hold on for life) and come back in 5 years.”

Crypto and private equity

10T has invested in 11 cryptocurrency companies, with the US exchange Kraken and French hardware wallet maker Ledger SAS being among the most prominent. Tapiero told Insider that his company has also deployed capital in brokerage firm eToro, blockchain lending startup Figure, and futures and options exchange Deribit.

Private equity firms raise funds from institutional investors and high net worth individuals and then invest in mid-sized companies with the goal of generating stable returns over the long term.

At first glance, this business model differs significantly from crypto investing, where high volatility is a defining characteristic. Bitcoin, for example, has fluctuated this year, with prices doubling from $ 32,000 to $ 64,000 before falling back to the $ 45,000 level.

But Tapiero is confident that his firm’s strategy – buying into crypto firms rather than individual coins – will produce appropriate returns without exposing investors to too much uncertainty.

“I don’t want to outdo bitcoin, ether, or venture capitalists,” he told Insider. “I want this portfolio to grow 5-10 times over the next few years, without the volatility you have in the crypto space.”

“If you own the businesses, you get the benefits without the volatility,” Tapiero added. “When Bitcoin and Ethereum last crashed, a basket of these companies still held its value.”

For now, 10T appears to be one of the early players among private equity firms targeting the crypto market. Tapiero offered a bullish prediction for the overall performance of his fund.

“Kraken, Ledger, eToro, Figure, Deribit, that’s a whole list of companies,” he said. “I have no doubts that over the next four or five years this portfolio will grow in multiples.”

“As far as I know, we are the first private equity fund to focus on late stage companies in the digital asset ecosystem,” he added. “But I left the traditional investing world because there was no alpha compared to the 1990s – eventually more people will follow suit and invest in crypto.”


Share.

Comments are closed.