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Winklevoss Twins: Bitcoin Will Reach $500K
While this isn’t likely to occur right away, they’re confident the spike will happen within the next ten years, so we can likely expect to see bitcoin reach this pinnacle before 2030. The world’s number one cryptocurrency by market cap is making headlines this morning as for a brief period during the early hours, bitcoin managed to reach its all-time high, which it first attained in December three years ago.
The currency had been in something of an unstable elevator ride since then, losing more than 70 percent of its value by the end of 2018 and falling all the way to about $3,500 per unit. From there, the currency spent the next five months in the doldrums before finally spiking to $5,000 in April of 2019.
While the currency did, in fact, spend the summer months of that year trading in five-figure territory, it was not to end 2019 on a high note. The currency ultimately dropped into the low $7,000 during December of last year and ended things on a rather mediocre note.
Now, with the rise in coronavirus cases, people are beginning to see bitcoin as a store of value and not just as a speculative asset. This new attitude has brought bitcoin up from the high $3,000 range about eight months ago to the $19,000+ it’s reached today, and while the price is no doubt large and impressive, the Winklevoss Twins still believe that the run is not quite over.
In an interview, Tyler Winklevoss mentions:
Our thesis is that bitcoin is gold 2.0, that it will disrupt gold, and if it does that, it has to have a market cap of $9 trillion, so we think it could price one day at $500,000 of bitcoin. So, at $18,000 bitcoin, it’s a hold, or at least if you don’t have any, it’s a buy opportunity because we think there’s 25x from there.
The Twins have always been big bitcoin and cryptocurrency advocates. They initially became some of the first bitcoin billionaires in 2017 after the asset experienced its December spike. They also founded the Gemini Exchange in New York, which is fully regulated and insured and is also one of the few crypto businesses to be in possession of a BitLicense.
It’s Going to Beat Gold!
A lot of people are realizing that bitcoin is the best defense and offers the opportunity for an asymmetric return of something like 25 to 40x from here, and I don’t think there’s an asset in the universe that can credibly offer that kind of potential and protect against inflation.