The geopolitical crisis in Ukraine has revived fears of nuclear escalation. Meanwhile, the global economy, which was gradually recovering from the recent shutdown due to the pandemic, has now faced the highest inflation rate in decades.
Despite the fundamental factors that should lead to Bitcoin's rally, the digital currency is still holding well below its highs.
Shark Tank star Kevin O'Leary and hedge fund manager Roy Niederhoffer, the founder of R. G. Niederhoffer Capital Management, share their views on the cryptocurrency market and the macroeconomic situation and discuss how crypto and other assets can fit into a traditional portfolio.
Roy Niederhoffer was one of the first investors of Bitcoin back in 2011. Not only was he ahead of the crypto curve, but he has also thrived in volatile markets like these for decades with his well-known quantitative futures fund.
According to Kevin O'Leary, there is no threat that Bitcoin can be banned. The number one cryptocurrency has economic prospects in terms of developing new technologies for financial services and payment systems. On the other side of the debate was hedge fund manager Roy Niederhoffer, the founder of RG Niederhoffer Capital Management, who said he would not rule out a ban on cryptocurrencies.
Niederhoffer reminded investors that there was a time when even gold was banned in the US. He added that the private ownership of gold was prohibited in many countries, including the US.
Both experts agreed that regulation of the crypto space is inevitable and will lead to a massive rally.
Kevin O'Leary explained that once crypto regulation is in place, institutions will start pouring trillions of dollars. Speculators will benefit from the fact that these will be indexed and that will be a great upside.
Niederhoffer's long-term price target for Bitcoin includes a scenario where the cryptocurrency could reach $500 million depending on inflation and adoption rates.
In his opinion, the price of Bitcoin can increase 30 times in 20 years and 85 times in 30 years. If inflation stays at 15% for 30 years and Bitcoin's market cap rivals that of the euro, Bitcoin may become the world's reserve currency. And in case of 20% inflation, the price of Bitcoin is going to be almost $500 million.
