Since its inception, Bitcoin has experienced a staggering ascent, yet there’s a Wall Street mathematician who believes its path is just beginning.
During a conversation on the Jamie Tree podcast, Fred Krueger made a bold prediction that Bitcoin, the world’s largest cryptocurrency, is poised for monumental returns over the next two to three decades. His optimism stems from observing that only about 1% of wealthy investors currently own Bitcoin.
“We’re super early. We’re very, very early,” Krueger emphasized during the podcast. “This thing will just work, and it will work […] You gotta just extend your time frame to about a decade,” he advised listeners.
The Role of Institutional Capital in Bitcoin’s Future Boom
The introduction of spot Bitcoin ETFs is changing how Bitcoin is viewed as an investment. These tools, like BlackRock’s IBIT and Fidelity’s FBTC, have successfully removed hurdles that once deterred institutional investors.
Now, investors are no longer required to deal with complex self-custody solutions or navigate the often confusing world of cryptocurrency exchanges.
Learning from the Growth Patterns of Tech Giants
Krueger’s confidence isn’t without basis. Reflecting on his tech investment experiences, he recounted putting money into Apple when the iPhone was unveiled in 2008. To his surprise, the stock continued to climb beyond his expectations.
After selling, he was astounded to see Apple’s stock quadruple twice, eventually skyrocketing 50 times higher. Krueger suggests Bitcoin may exhibit similar growth and stresses the importance of maintaining a decade-long viewpoint.
An image on TradingView.com captures BTCUSD trading at $95,777.
The Wealth Disparity in Crypto Investments
From a mathematical standpoint, the future adoption of Bitcoin is intriguing. Currently, millionaires and billionaires allocate a tiny 0.01% of their portfolios to Bitcoin. Krueger posits that even a modest increase to 2% could unleash a significant wave of capital into the crypto market.
“If millionaires and billionaires decide to increase their Bitcoin exposure from a negligible 0.01% to just 2%, that small adjustment could unleash an avalanche of capital into Bitcoin,” Krueger explained.
Given the vast amount of wealth tied up in traditional investments—such as bonds, real estate, and what Krueger calls “overpriced stocks”—this shift could have extensive repercussions.
A New Phase of Investment Accessibility
Spot Bitcoin ETFs mark a pivotal moment in the evolution of cryptocurrency investing. These products have made it as easy to invest in Bitcoin as it is in traditional equities. They provide a familiar and regulated entry point for institutional investors who have been eyeing Bitcoin.
Despite Bitcoin’s rapid rise since 2009, Krueger argues the cryptocurrency industry is still in its early stages. He remains convinced there’s room for expansion if wealthier segments start adopting digital assets. Far from viewing Bitcoin’s best days as over, the mathematician sees this as the beginning of a long-lasting growth era, spurred by institutional interest.
His message is clear: the market is largely untapped, given that fewer than 1% of affluent individuals currently own Bitcoin.
Featured image courtesy of Gemini Imagen; chart sourced from TradingView.
