Now is the perfect time to buy bitcoin, according to Spencer Bogart, a partner at Blockchain Capital.
Speaking to Bloomberg, Bogart was evangelical about bitcoin, calling it “the most compelling asset in the world right now.” Bogart is notoriously bullish, maintaining a $50,000 price target on bitcoin.
Why is he so optimistic during the depths of this crypto winter?
He pointed a string of possible catalysts for another bitcoin boom, including global tensions, rising national debt, and the increasing interest from institutions. Let’s go through them one at a time.
I find it very difficult to make the case that there *won’t* be rising demand for a supra-sovereign digital asset with absolute scarcity over the next 5-10 yrs.
Even harder to make the case once you layer on the additional capabilities (& demand) unlocked by programmable money
— Spencer Bogart (@CremeDeLaCrypto) December 6, 2018
1. Pension Fund and Institutional Interest
Asked what he thinks will be the catalyst for the next price run, Bogart highlighted the interest of pension funds. As CCN reported, Fairfax County, Virginia has allocated part of its pension fund to Morgan Creek’s blockchain opportunities fund.
An insurance company, a university endowment and a private foundation also followed suit.
Bogart also pointed to the news that a major wealth manager for pensions threw its weight behind bitcoin this week. As more pension money flows into the space, it will trigger a domino effect.
This morning our team at Morgan Creek Digital announced a new $40 million crypto venture fund anchored by two public pensions.
The institutions aren’t coming.
They’re already here. 🚀
— Pomp 🌪 (@APompliano) February 12, 2019
2. Global Tensions and Rising National Debt
Bogart also took a broader view of bitcoin’s place in the world. He pointed to political tensions between globalism and populism, suggesting bitcoin could fill a void when economies falter.
Bogart also warned about the rising mountain of national debt, which hit $22 trillion in the US alone this month. Bitcoin offers an alternative economic system.
US National Debt Hits Terrifying $22 Trillion. This is Why Bitcoin Matters. https://t.co/Y40sbw6gTm
— CCN.com (@CryptoCoinsNews) February 13, 2019
3. Entrepreneurial Activity in the Crypto Space
Despite the decline in price, Bogart maintains that entrepreneurial activity is still thriving.
“We see more and more companies coming in every day. And higher quality entrepreneurs as well.”
In other words, the fundamentals at the heart of blockchain development are strong. Dedicated pioneers are still building phenomenal products. And new, talented players are entering the space every day.
4. Bitcoin Grows Stronger over Time
Bogart claims bitcoin is strengthened every day simply by the passage of time.
“Every day that bitcoin is still alive it goes from scary and unknown to trusted and proven.”
Bitcoin has gone through bigger crashes than this and survived. Each time it comes back stronger. Bitcoin now has more resolve and trust than ever before, proven by pension fund adoption and institutional activity.
Has Bitcoin Bottomed?
Despite his optimism, Bogart was wary of predicting the end of the bear market.
“Is this the bottom? I’m not sure,” he said.
Still, he maintained that now is a good time to buy for the long-term, even if all-time highs aren’t coming just yet. During the same discussion, Bloomberg Intelligence analyst Mike McGlone struck a more bearish tone.
McGlone has long said that bitcoin has more room to fall:
Bitcoin Should Decline Further – Here’s Why – The price has fallen $15K since its peak, hovering around $3K, and key indicators give us reason to believe it has another $2K or so to slide. There’s little to stop it from revisiting the $1K range, about where the 2017 frenzy began. pic.twitter.com/aEaKadapx1
— Mike McGlone (@mikemcglone11) January 29, 2019
However, McGlone still believes “institutions might look at bitcoin as a proxy for digital gold.”
As for which cryptocurrencies to focus on, Bogart urged people to focus on bitcoin and ethereum. He’s less convinced about the mountain of altcoins out there.
And what about Ripple? “Maybe down the line.”
Featured Image from Shutterstock. Price Charts from TradingView.