Cryptocurrency analyst: amid today’s problems, bitcoin can grow 3 times

The founder of the Eclectica Asset Management hedge fund believes that rising base rates in the world’s largest countries will lead to a deterioration in macroeconomic conditions, which will be favorable for bitcoin.

Hugh Hendry is confident that bitcoin will become one of the best assets to invest in in case of economic problems. Currently, the first cryptocurrency has a capitalization of $ 595 billion, and, according to Hendry, the figure can triple.

«When you increase the base rate to 5% in the UK, the effective rate is about 20%. And that breaks a lot of processes in the economy,» Hendry explains.

«For gold, the price increase is too difficult, because it has a capitalization of $ 13 trillion. If gold triples, its capitalization will be equal to the entire US stock market. I’ve lived a long time and seen all kinds of crazy things, but I can’t imagine that. Therefore, gold is likely to maintain its price. Bitcoin’s capitalization is half a trillion. And bitcoin has already entered the world of capital as an alternative asset. That is, as an alternative to commercial real estate, private companies, gold, etc. And this market is worth $ 100 trillion, so bitcoin can easily triple its capitalization and reach $ 1.5 trillion, which would be only half of Apple’s capitalization,» Hendry believes.

The investor is confident that the first cryptocurrency is likely to benefit from the pressure of US regulators on other crypto assets, as only bitcoin has so far been officially recognized as a commodity, not a security.