Despite the meteoric rise of Bitcoin since its inception, a Wall Street mathematician insists that its journey is only just commencing.
In his appearance on the Jamie Tree podcast, Fred Krueger boldly asserts that the world’s largest cryptocurrency is on the brink of “massively high returns” within the next 20 to 30 years. His conviction is based on an analysis of the current market penetration of Bitcoin among affluent investors, which is a mere 1%.
“We’re super early. We’re very, very early,” Krueger said in the interview. “This thing will just work, and it will work [,,,] You gotta just extend your time frame to about a decade,” he added.
Institutional Capital Could Trigger The Next Bitcoin Bull Run
The recent introduction of spot Bitcoin ETFs has significantly altered the landscape of Bitcoin investment. These new financial instruments, particularly BlackRock’s IBIT and Fidelity’s FBTC, have eliminated the traditional barriers to entry that previously discouraged institutional investors.
Gone are the days when investing in Bitcoin necessitated the management of intricate self-custody solutions or the navigation of complex cryptocurrency exchanges.
Comparing Growth Trajectories Of Tech Giants
Based on his personal experience investing in tech companies, Krueger’s optimism is not unwarranted. He describes how he invested in Apple around the 2008 launching of the iPhone and saw the stock rise far higher than he had anticipated.
After selling, he watched in amazement as the stock quadrupled twice and then soared 50 times higher. He argues that Bitcoin may follow this pattern, highlighting the need of keeping a 10-year perspective.
The Wealth Gap In Crypto Allocation
The mathematics of prospective Bitcoin adoption provides a compelling argument. Millionaires and billionaires currently allocate approximately 0.01% of their portfolios to Bitcoin. Krueger proposes that a mere 2% increase could trigger an unprecedented influx of capital into the cryptocurrency market.
“If millionaires and billionaires decide to increase their Bitcoin exposure from a negligible 0.01% to just 2%, that small adjustment could unleash an avalanche of capital into Bitcoin,” Krueger said.
Given the substantial sums of wealth that are presently invested in conventional assets such as bonds, real estate, and what Krueger refers to as “overpriced stocks,” this transition could have a significant impact.
A New Era Of Accessibility
The introduction of spot Bitcoin ETFs represents a critical juncture in the history of cryptocurrency investment. These financial products have democratized the process of investing in Bitcoin, rendering it as straightforward as purchasing conventional equities. These ETFs allow institutional investors who have been watching Bitcoin from the sidelines to obtain exposure in a regulated and familiar way.
Despite its rapid rise since 2009, Krueger believes the cryptocurrency sector is still in its “first inning,” with room for growth if wealthier investors adopt digital assets.
The seasoned mathematician doubts Bitcoin’s best years are behind it.
He sees the current market as the start of a multi-decade journey where institutional acceptance might spur tremendous development. Kreger’s message to investors worried about missing out is clear: the market is undiscovered because less than 1% of affluent people have it.
Featured image from Gemini Imagen, chart from TradingView
