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Hong KoKong-based cryptocurrency exchange Gatecoin’s marketing chief has stated that bitcoin price, despite these boom times, is “undervalued.”
In a televised interview with Bloomberg today, Gatecoin’s marketing chief and head of business development for Asia Pacific Thomas Glucksmann was led onto the subject of bitcoin’s “fair value”, at a time when prices are nearing $10,000 – a remarkable 10x gain since the turn of the year. The bitcoin executive professed the market remains relatively “illogical” compared to traditional financial assets where price predictions are analyzed over usual valuation metrics.
Asked if it was “impossible” to determine bitcoin’s fair value, Glucksmann acknowledged and replied:
I would still argue that it is highly, highly undervalued. If you look at the long-term potential of the technology in the next 10, 20, 30 years, $10,000 is cheap in my opinion.
While bitcoin is now seen in the mainstream as a store of value among retail investors, it remains a peer-to-peer decentralized electronic cryptocurrency, a fact Glucksmann is keen to point out even if or when the cryptocurrency is valued at a million dollars. “Bitcoin is divisible up to 8 decimal places,” the Gatecoin executive told the interviewer, referring to the smallest fraction of a Bitcoin, also known as Satoshis (0.00000001 BTC – a hundredth of a millionth BTC).
Even if one bitcoin is worth a $1,000,000, you could still have $1 USD worth of bitcoin which you could still transact peer-to-peer. It’s important to look at bitcoin in that way with that longer-term view.
At press time, data from CoinmarketCap reveals bitcoin price trading at $9,927 and topping $165 billion in the total market value of all 16.7 million mined bitcoins.
Gatecoin, which lays claim to being the world’s first exchange to list Ethereum’s ether tokens in mid-2015, suffered major operational disruption in recent months after Hong Kong banks abruptly froze its accounts, forcing the exchange to suspend HKD and USD deposits from customers at a time when the exchange had ‘tripled’ its customer base following bitcoin’s price gains. The exchange found respite with new banking partners in Europe and is scheduled to resume bank transfers in December.
The exchange also added support for Litecoin this month, enabling users to buy and sell the alternative cryptocurrency with bitcoin, ether and the Euro. In his remarks today, Glucksmann underlined Litecoin as an “underrated cryptocurrency” that shares many similarities with bitcoin without suffering the same “scaling issues” that has often plagued its development and community.
Featured image from Shutterstock.