In this photo illustration, visual representations of the digital cryptocurrency, Bitcoin are arranged on January 4, 2021 in Katwijk, Netherlands.
Yuriko Nakao | Getty Images
GUANGZHOU, China — Bitcoin could rise to $1 million over the long term to become a reserve currency for the world, according to one asset manager.
But JPMorgan warned of risks ahead as the cryptocurrency continues to rally.
Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, said bitcoin could hit $500,000 by the end of the decade. It could eventually reach $1 million per coin, he added, without giving a timeline.
“I think that bitcoin will eventually rise to become the global reserve currency. I think bitcoin will eventually be much much larger than the gold market cap,” he said during the latest episode of CNBC’s “Beyond the Valley” podcast.
Why is bitcoin rallying?
Meanwhile, global central banks have been easing monetary policy — such as lowering interest rates and buying assets through the so-called quantitative easing program — to help cushion the blow to economies hit by the coronavirus pandemic.
“There were trillions of dollars that were printed and injected into the economy and everyone from individuals to financial institutions and corporations ran around the world looking for the best way to protect their purchasing power, they ultimately decided it was bitcoin,” Pompliano said as he discussed what was behind bitcoin’s surge.
(Bitcoin) will eventually take that seat at