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Webull CEO Anthony Denier predicts Bitcoin will surge to $55,000 by the end of 2021. He told us why he's bullish on the cryptocurrency long-term.

Business Insider Australia logo Business Insider Australia 28/01/2021 William Edwards
a man wearing glasses and smiling at the camera: Anthony Denier shared his three biggest pieces of advice for young investors just getting started. Anthony Denier shared his three biggest pieces of advice for young investors just getting started.

Being that he's the CEO of a Wall Street brokerage, Anthony Denier's family badgers him for investment advice.

Over the holidays, the Webull executive said, they grilled him about bitcoin.

"Guys," he told them, "I don't know if bitcoin goes lower next month, but I think over the course of time, bitcoin will be higher."

To be more exact, Denier predicts the cryptocurrency will surge to $US55,000 per coin by the end of 2021, a 70% increase from its current price of around $US32,200.

In an interview with Insider on January 22, Denier shared why he's so bullish on the digital currency going forward.

A big reason is growing acceptance and legitimacy, as institutional investors and big names like David Tepper and Stanley Druckenmiller sink money into the asset, and platforms like Cash App and PayPal allow use of the currency.

On its legitimacy, Denier gets philosophical. While Bitcoin bears argue that the currency will fail because of its arbitrary value, Denier points to gold's inherent value as a rebuttal.

"Why is gold more valuable than silver? It's not like we use gold to build buildings. It's just that someone a long time ago said 'this metal is really valuable and I want it,' and everyone jumped on board and everyone believes gold has this amazing value," he said. "So it's a collective consciousness. Same thing with bitcoin, it's a collective consciousness where people say 'yes, that has value to it.'"

Further on this point, he highlighted the fact that most of bitcoin's supporters tend to be younger, and therefore will prove to be an increasingly relevant force in legitmising the currency as time goes on.

Denier also said that the risk of inflation in fiat currencies is a tailwind to bitcoin. Inflation has become one of the main themes on Wall Street in recent months, as monetary and fiscal policy remain loose in the near future.

Denier's 3 top tips for young investors

But bitcoin can be a risky investment in the near-term with its high levels of volatility. So can any individual asset, as some GameStop investors may have experienced in recent days.

Denier shared his three biggest pieces of advice for young investors just getting started.

He first recommends that they put their money into what they know, like their line of work or study.

"If you build homes or you're a carpenter's apprentice, and you go to Home Depot to make the runs for the guy or the girl that you work for, and you see Home Depot is jam-packed with people because everyone is stuck at home and everyone is looking at their cracked walls and they want to fix them, that's when you say, 'ah, Home Depot's killing it! I'm going to buy some Home Depot stock,'" Denier said.

Second, Denier recommended being willing to take the time to learn about markets and investing.

He said young investors have a vast amount of resources that weren't available to older generations, like YouTube, Reddit, and content on online brokerages.

"It was always learning about it from parents or talking about it with your friends," he said. "There were no resources."

Finally, Denier said more important than using the above resources is gaining experience trading, which he said doesn't have to be with large amounts of money â€" or any at all.

"We have a paper trading platform on Webull so you don't even have to use real money. You can use virtual money," he said. "There's no better educator than experience."

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