Winklevoss Twins Give Bullish Predictions About Bitcoin By Saying Bitcoin Price Will Multiply 40 Times
The journey of Bitcoin has indeed been an awe-inspiring one starting from the time when Bitcoin price equalled a few cents to modern days where you will have to shell out a considerable corpus for directing a single unit towards your wallet. In this journey, Bitcoin has received the support and appreciation from a large number of market maestros, the Winklevoss twins being the biggest ones.
At the time of publishing this article, Bitcoin price was around $8000 but Cameron Winklevoss feels that investors can expect the price of Bitcoin to pump up by 40 times “someday.”
This bold prediction was made by Cameron on Wednesday at the Milken Institute’s MENA Summit where he pointed out that:
“Taking bitcoin in isolation […] we believe bitcoin disrupts gold. We think it’s a better gold if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it’s better than scarce … it’s more portable, its fungible, it’s more durable. Its sort of equals a better gold across the board.”
Tyler Winklevoss has previously defended Bitcoin against critics such as Warren Buffett, J.P. Morgan CEO Jamie Dimon and Goldman Sachs. Dimon had made the infamous comment of calling Bitcoin a “fraud” whereas Buffet claimed that crypto was destined to face “a bad ending” and Goldman Sachs predicted that cryptos will lose all of its value eventually.
Tyler Winklevoss argued that these virtual tokens can be the perfect instrument for fostering machine-to-machine transactions by stating that:
“Cryptocurrencies aren’t really important for human-to-human transactions … but when machines-to-machines trade economic value, they are going to plug into protocols like bitcoin and ethereum. They are not going to open bank accounts at J.P. Morgan … those were invented by bankers before the internet existed,” Tyler stated, adding that “the criticisms are just a failure of the imagination.”
The Winklevoss twins became the very first Bitcoin billionaires quite recently. Thus, their view cannot be regarded as an unbiased one. Their logic in favour of the argument is that digital gold is much superior compared to its physical alternative. Hence the comprehensive market capitalization of Bitcoins can not only just match but even surpass the yellow metal. He explained the whole scenario saying that:
“If you look at a $100 billion market cap today, now last week it might have been more like 200, so it’s actually a buying opportunity, we think that there’s a potential appreciation of 30 to 40 times because you look at the gold market today, it’s a $7 trillion market. And so a lot of people are starting to see that, they recognize the store of value properties. So we think regardless of the price moves in the last few weeks, it’s still a very under-appreciated asset.”
The debate of superiority between bitcoin and gold has been an ongoing one. A report has even been published by the World Gold Council claiming that Bitcoin can very soon undermine central banks. The market cap of Bitcoin was hovering below $140 billion in the aftermath of a big sell-off which happened on 6th February causing the cap to drop below $102 billion. This placed the estimated market cap of the twins above $5 trillion. The Harvard pass-out twins claim that this number can disrupt the global gold market valued at $7 trillion. CNBC reported that the brothers were however keeping a range of 10-20 years for their prediction.
The extreme volatility in Bitcoin price as well as the price of other cryptocurrencies has discouraged a large number of people from using it as a trustworthy payment mode. Vendors are often seen shying away from the crypto medium since it becomes cumbersome to place a single value given its inherent price fluctuations. Irrespective of all such difficulties, certain crypto enthusiasts are keeping their fingers crossed about its future prospects. Thomas Glucksmann, the APAC business development chief of exchange Gatecoin recently said that there exists “no reason why we couldn’t see bitcoin pushing $50,000 by December.”
KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology , Cryptocurrencies and upcoming ICO’s.
Subscribe to our newsletters and join our Telegram Channel to stay updated.
Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.