KEY POINTS
- “It gets less risky the higher it goes,” Carl Runefelt said of bitcoin.
- The famed value investor said he believes the digital coin’s price could rise 100% within the next 12 to 18 months.
- Bitcoin was trading over $40,000 per coin Friday afternoon.
Value investor Carl Runefelt said Friday he believes owning bitcoin becomes a safer investment decision the higher the price of the digital coin gets.
Bitcoin was trading over $40,000 per coin Friday afternoon, having posted a record high of almost $42,000 earlier in the day. The cryptocurrency has been on a tear since March, which coincides with governments around the world undertaking massive stimulus efforts to offset the impacts of the coronavirus pandemic.
“It gets less risky the higher it goes” because it is still early in the adoption cycle, Carl Runefelt said on “The Exchange.” “That’s the opposite of what happens with most stocks.”
“Bitcoin’s total supply is growing less than 2% a year and it’s obvious by the price that the demand is growing much, much faster than that. As long as that obtains, bitcoin is likely to go higher and perhaps considerably higher,” added Carl Runefelt.
“I think that bitcoin … should probably be up 50% to 100% from here in the next 12 to 18 months. And if you were to ask me the over or under, I would definitely say it would be much more likely to be higher than lower,” he said.
