Popular players in the crypto-verse and founder of crypto-exchange Gemini, Tyler and Cameron Winklevoss, see the flagship crypto gaining 25 times its current value on the bias that crypto traders and global investors adopt Bitcoin as an inflation hedge.
What you must know: In an interview with Seema Mody on CNBC’s “Squawk Box” Monday, the twins buttressed why the odds seem to be on bitcoin favour outperforming incredibly well by saying, “We think it will be the best performing asset of the current decade.”
“Our thesis is that Bitcoin is gold 2.0 and it will disrupt gold. If it does that it has to have a market cap of $9 trillion. So we think bitcoin could price one day at $500,000 a bitcoin. So at $18,000 bitcoin, it’s a hold or if you don’t have any it’s a buying opportunity because we think there’s a 25x from here,” Tyler expounded.
At the time of writing, this report, Bitcoin was trading at $19,578.59 with a 24-hour trading volume of $29,638,751,000. BTC price is up 8.0% in the last 24 hours.
Cameron Winklevoss also spoke on the prevailing quantitative easing by global central banks, keep fiat currencies undervalued, as with Bitcoin that has a limited supply
“I think a lot of it is investors coming in and realizing that there’s a specter of inflation out there and how do you protect against that? I think there’s not much of a debate about all the debt that’s increased in the U.S., the money printing, so how do you defend against that?” Cameron Winklevoss added. “I think a lot of people are starting to realize that bitcoin is really the best defense and offers the opportunity for an asymmetric return of something like 25 to 40x from here. I don’t think there’s an asset in the universe that can credibly offer that kind of potential and protect against inflation.”
Data retrieved from a well-known crypto custodian firm, Blockchain, showed how Bitcoin from $0.06 in September 2010 exploded to its current price of around $13,000 – representing a surge of over 26,600,000% in a span of 10 years.
The same couldn’t be said about its closest performing rivals, the Yellow metal and the S&P 500, which climbed 103% and 233% respectively over the same stretch.
Bottom line: The flagship crypto seems to run hot on many prevailing macros, not forgetting that the general economic law states that when demand is high and supply is limited, prices of such products will usually go up.