Guggenheim’s Minerd fires back at Bitcoin and cryptocurrencies

According to the head of Guggenheim’s investment office, Scott Minerd, Bitcoin is in crisis and will soon touch $8000.

Scott Minerd’s pessimism about Bitcoin

In statements on Monday during the World Economic Forum in Davos, to the microphones of CNBC‘s Andrew Ross Sorkin, Scott Minerd put it this way:

“When it consistently drops below 30,000 [dollars], 8,000 [dollars] is the final low, so I think we have a lot more room for the downside, especially with the Fed being restrictive”.

According to the economist, Bitcoin’s decline will not stop as its real value is equivalent to $8,000, but this would mean a 70% loss in value that would complement the total loss of cryptocurrencies this month. The figure amounts to $500 billion, much of it due to the Terra ecosystem debacle. 

Of the same opinion as Minerd are other distinguished economists such as Robert Kiyosaki author of the bestseller Rich Dad Poor Dad, who makes a similar prediction but says that the range he predicts is between $11,000 and $8,000. 

The US Central Bank’s ironclad fight against inflation, followed closely by other central banks around the world with consistent and periodic rate hikes in addition to monetary policy, are fertile ground for the fall of Bitcoin, which has been showing the strain lately and is struggling to remain at $30,000. 

The price of BTC has dropped a resounding 24% in the last 30 days alone and the descent seems to be slowly continuing. 

According to the CIO, almost all crypto are “junk” he said, however the same fate is not reserved for Bitcoin and Ethereum which will have a long life. 

Cryptocurrencies structured in this way are probably not the final form of a worldwide project that will lead to people using them commonly in the future, perhaps replacing FIAT currencies altogether. 

Minerd’s vision for the cryptocurrency market

The thoughts of the Head of Department at Guggenheim, are the following: 

“Most of these currencies are not currencies, they are junk. I don’t think we’ve seen the dominant player in cryptocurrencies yet. If we were sitting here in the Internet bubble, we would be talking about how Yahoo and America Online were the big winners. Everything else, we couldn’t tell you if Amazon or Pets.com would be the winners. 

I don’t think we have the right cryptocurrency prototype yet. None of these things pass, they don’t even pass on a basis”.

With these allusions, the economist compares the period crypto is currently experiencing to the Dot-com bubble. A scenario that at the time was spooky and which since its resurgence has given rise to, among other things, the giant Amazon, a staple of the American stock exchange.