Philippe Laffont, the founder of hedge fund Coatue, anticipates that Bitcoin's market value has the potential to surge to $5 trillion. The above projection would mean a 134% increase from its current market cap of about $2.1 trillion.
Laffont believes it’s realistic for Bitcoin to eventually account for 1% – 2% of the world’s total assets. Global assets are collectively worth around $500 trillion in net value. Currently Bitcoin makes up just 0.5% of that sum.
Laffont likes to argue that Bitcoin’s current valuation seems really low compared to everything else in the world. Further, he pointed out that Bitcoin’s volatility has appeared to be decreasing in comparison with the stock market.
Bitcoin has surged of late, hitting $107,000 and pushing its year-to-date price gain to 14%. This happens as the US Dollar Index has dropped 10% year-to-date.
It’s starting to look like global investors are less willing to store their wealth in U.S. assets. Over the summer, a Bank of America survey of global investors found over 50% of them think that international equities are going to be the best performing asset class over the next 5 years. Fortunately for bitcoin, fears about de-dollarization and the end of U.S. exceptionalism might turn into some good PR for the cryptocurrency.
Laffont has expressed publicly that he wishes he had made the plunge to invest in Bitcoin earlier.
"I have not gotten involved in [bitcoin]. I wake up every day at 3 in the morning and I'm like, 'why am I such an idiot? What have I been waiting for, not being involved in it?' And it just goes up and up," - Laffont
"Sometimes you have to change your mind and you have to say, well, I made a mistake," - Laffont
"I always thought, bitcoin's amazing, but it's double or triple the volatility of the Nasdaq," - Laffont
"Do I own it now? Do I own it tomorrow or in a few days? But every day, I do think, 'Why do I not own it?'" - Laffont
