“$5,000 could happen in a few months. It’s only starting to get traction at this time,” Moas, founder of Standpoint Research, told CNBC in a phone interview Wednesday. “It’s starting to spread like wildfire right now.”
He pointed out that since only 21 million bitcoin can ever exist, increasing demand for the money will naturally drive its price up.
Bitcoin briefly tripled in value this year, hitting a record $3,025.47 on June 11, according to CoinDesk. The digital money traded Wednesday near $2,600, more than double its Dec. 31 cost of $968.
“This is not something I could keep my hands off of,” Moas said. “What could be more painful than losing [money in cryptocurrencies] is not acting.”
Moas said he plans to invest more in them after he releases a 40-page report on cryptocurrencies in the next few weeks.
The research analyst’s view on bitcoin joins others on Wall Street’s optimistic views. On Sunday, Goldman Sachs’ technical analyst Sheba Jafari said in a note that bitcoin could rise as high as $3,915.
However, “this has a long , long way to go before it gets to bubble territory.”
Moas’ justification is so little of capital is in cryptocurrencies right now the digital monies can absorb more of those funds.
McKinsey Global Institute estimated that the value of debt and the world’s stocks rose to $212 trillion.
On the other hand, CoinMarketCap data revealed the market capitalization of all cryptocurrencies has grown from below $20 billion at the start of this year to about $100 billion, still less than a tenth of global capital markets. Bitcoin has a market value of roughly $42 billion, according to CoinMarketCap.
“There’ll be scams, there’ll be accounts wiped out, there’ll be people that get hurt, like every other technology that’s going on,” Moas said. But “I believe that the cryptocurrency is here to stay. I believe we are in the second inning of a 9-inning ball game”
Many, including some on Wall Street, consider that the blockchain technology behind bitcoin can change the way the world operates like the net did.