Back in 2018, a well-regarded Harvard economist boldly predicted Bitcoin was more likely to hit $100 than $100,000 in the coming decade.
Well… that didn’t age well.
On Monday morning, Bitcoin closed in on its all-time high above $120,000 per coin - more than 1,000 times higher than that gloomy forecast.
While I’ll admit I enjoy pointing out when “experts” get it spectacularly wrong, this story has an even juicier twist.
Last week, Harvard - yes, Harvard - revealed it had purchased 1.9 million shares of the iShares Bitcoin Trust ETF (IBIT), giving its endowment direct exposure to the world’s largest cryptocurrency. As of Monday morning, that stake was worth about $129 million.
Here’s the kicker: That Bitcoin position now makes more than the $102 million it has invested in a gold ETF.
Think about that for a moment. One of the world’s most prestigious endowments has gone bigger on Bitcoin than gold.
Bitcoin: An Asset Class, Whether Wall Street Likes It or Not
For years, most money managers in the U.S. have dismissed Bitcoin and cryptocurrencies as a fad - not a legitimate asset class. I’ve disagreed from the start.
When I managed money and spoke at conferences around the globe, I argued the exact opposite. And now, with the total crypto market value above $4 trillion, it’s impossible to deny that crypto has earned its seat at the investing table.
The “Smartest” People Get It Wrong All the Time
Even the brightest minds in finance get it wrong - often. I’ve been wrong plenty of times in my own career. But one mistake I’ve made only rarely is ignoring real innovation and disruptive change.
That’s the problem with Wall Street, traditional advisors, and yes… even many newsletter publishers. They get stuck in their ways. They refuse to look outside the box.
I’ve worked for firms that mocked Bitcoin for years, only to turn around and promote it once the price skyrocketed. I can still remember pitching Bitcoin in meetings and getting laughed at by the “smartest guys in the room.”
Now, those same people act like they’ve been Bitcoin believers all along. Harvard included.
The Lesson for Investors
The takeaway here is simple: just because the old guard dismisses something new doesn’t mean you should run the other way.
In fact, history shows it’s often the opposite - the biggest opportunities are the ones that get laughed at in the early days.
Don’t be afraid to stand apart from the crowd. Sometimes, that’s exactly where the best returns are found.
Here’s to the future,
Matt McCall
Editor, Market Insights
