(Kitco News) The popular cryptocurrency is known for its volatility, so don’t be surprised to see prices surge to $1 million this decade as bitcoin becomes more scarce than gold and big pension funds start piling in, according to Fred Pye, president and CEO at 3iQ.
“Bitcoin already is the most successful investment ever in the history of the world. Nothing has gone from zero to a $1 trillion in ten years,” Pye told Kitco News, referencing bitcoin’s market cap.
When asked to compare bitcoin and ethereum to commodities, Pye described bitcoin as gold and ethereum as Dr. Copper.
“Gold is a store of wealth. The scarcity of gold and bitcoin is equal right now, but two years from now, bitcoin will be twice as scarce as gold,” he said.
On the other hand, the second-largest cryptocurrency ethereum behaves more like Dr. Copper because it represents the overall health of the digital economy, just like copper is known to predict turning points in the health of the global economy.