Bitcoin could reach $420,000 by 2030, crypto bull says

Can Bitcoin keep heading higher? Well Ric Edelman thinks so.

Edelman, founder of The Digital Assets Council of Financial Professionals, joined TheStreet to provide a proof for his bull case for the cryptocurrency.

Related: Struggling bitcoin company files Chapter 11 financial disaster

Full Video Transcript Below:

CONWAY GITTENS: Where do you see bitcoin headed in 2025?

RIC EDELMAN: I see it going higher. I'm on record as suggesting that by the tip of the last decade, bitcoin will be $420,000. I believe bitcoin is going to upward push eightfold over the subsequent six years, far outpacing the performance of the opposite asset class. So I'm a sturdy believer which you intend to have a 1 or 2 or Three% allocation for your portfolio to bitcoin and ethereum because I suspect it be a terrific diversification tool and also you've an extremely high potential for outperforming the markets. And if it be going to no longer go well, it be simplest 1 or 2% Or not it will probably be no longer going to lead to you irreparable financial damage. So I suspect too lots of people don't know enough about this and they're missing the chance which is on the market.

CONWAY GITTENS: I am going to get back to the portfolio percentage in a minute, but I'm in a position to't just will will let you go with giving us a massive number like that, 420,000 for bitcoin. How do we get there? What's the what is the catalyst to maneuver bitcoin prices from where they're now to your target?

RIC EDELMAN: Well, examine the arena's total wealth. In case you add up the total value of the total money on this planet, the total value of stocks and bonds and real estate and gold and oil, et cetera, all of it adds up to somewhere about seven 7 and nil.5 of or 70, $80 trillion of value. We are recommending roughly one 2% of assets in crypto. If everyone on this planet who owned all those assets were to allocate just 1% of their portfolio to crypto, we're going to likely be talking about a $7 trillion infusion of capital into the asset class. We know there may alright be simplest 21 million bitcoins that suggests that you may need the option to ever be created. 19 million of them to this point have already got. So which you do the straight forward arithmetic. 19 million bitcoins into 7.5 trillion of asset flows.

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That translates to about $420,000 per bitcoin. So we believe that over the subsequent five years we are going to look greater institutional engagement. You are going to definitely see endowments, pension funds, sovereign wealth funds, family offices, hedge funds engaging in asset allocation, including crypto of their portfolios. We're already starting place to look this. 0.5 one thousand million people worldwide already own crypto. We're seeing pension funds and endowments already engaged. Now that the bitcoin ETFs and Ethereum ETFs are reachable in on the market here in the USA. So as this adoption grows, since the provision is fixed, the increased demand will translate right into a radically higher stock price or price for bitcoin.

CONWAY GITTENS: So which you mentioned the upward thrust in the cost of bitcoin, but man, when the cost drops, it actually does drop. So what's your sales pitch to clients? Crypto, of course, is a shiny new thing, but the volatility on that thing is thru the roof. That volatility may alright be an excessive amount of for many investors.

RIC EDELMAN: It's good to be absolutely right. Or not it will probably be an awfully volatile asset. It had seven times. It has lost 70% or more of its value. So it be ridiculously volatile. Or not it will probably be the way it be for any new technology. Go back to Amazon. Investigate its first 15 years of life. It had the same level of volatility. Or not it will probably be no longer uncommon all over the tech stock world, so you intend to recognize that fact. It truly is best to come to a decision, as you simply pointed out, do you have got got you might have the stomach for that volatility? Is that this something you intend to have as part of your portfolio? If that you may need the option to possibly have the option to manage the volatility, if that you may need the option to possibly have the option to be a future investor realizing that in the tip, high volatility can translate to high profit while also running the chance of high loss, that'll will will will let you come to a decision whether or no longer you intend to do that. And it be a massive part of the reason I prefer to recommend simplest 1 or 2 or Three% Do not put 10 or 20 or 30% of your money in this. Or not it will probably be way too volatile and too risky. But 1 or 2% I suspect nearly all people can tolerate that.