Winklevoss Twins: Bitcoin Has Potential To Grow 30 To 40 Times

  • The famous Winklevoss twins believe bitcoin could one day be worth 40 times its current value
  • This would see bitcoin's market cap hit $5 trillion, achieveable by disrupting gold's $7 trillion market

Cameron and Tyler Winklevoss, known as the Winklevoss twins, recently argued that bitcoin could see its value grow 40 times from where it is now, as it will disrupt the $7 trillion gold market.

According to CryptoCompare, bitcoin is currently trading at $8,413 and the cryptocurrency’s market cap is $141 billion, as it recently started recovering from a violent sell-off that saw it dip to little over $6,000. If it were to rise 40-fold, its market cap would surpass $5 trillion giving a single bitcoin a value north of $250,000.

Speaking to CNBC at the Milken Institute’s MENA Summit, Cameron Winklevoss stated that bitcoin has the potential to appreciate “30 to 40 times,” as the twins believe the cryptocurrency disrupts gold thanks to its fixed supply, portability, fungibility, and durability. All of these characteristics, to Cameron, are more present in bitcoin than in gold.

The twin stated:

“So 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 underappreciated asset."

Cameron Winklevoss

Even if we take Cameron’s $100 billion market cap, a 40 times price appreciation would see bitcoin’s market cap hit $4 trillion. The twin didn’t reveal a specific time period for the cryptocurrency to hit the trillion-dollar value, but according to CNBC his brother Tyler mentioned they were taking a 10-to-20-year approach.

The Winklevoss twins are famously known for settling a dispute with Facebook founder Mark Zuckerberg in 2008, over a claim that he stole their idea for the social network. They then got involved with bitcoin and cryptocurrencies and founded the Gemini cryptocurrency exchange. Soon after, the Winklevoss were credited with becoming the first known bitcoin billionaires,however that titled has slipped at the current bitcoin value.

The Winklevoss Twins On Crypto ‘s Critics

The twins were then questioned on their thoughts regarding some of the crypto space’s most fervent critics, including JP Morgan’s CEO, Jamie Dimon who famously called bitcoin a “fraud,” and billionaire investor Warren Buffett who said cryptocurrencies would “come to a bad ending.”

In response, Tyler Winklevoss said their criticisms are just a “failure of the imagination.” He went on to state cryptocurrencies “aren’t really important for human-to-human transactions,” clarifying that when machines trade economic value between themselves they won’t open a bank account at JP Morgan, but will instead use protocols like that of bitcoin or ethereum.

The twin then described a world in which, for example, driverless cars pay other cars, or a large number of devices make micro-transactions on a regular basis.

Bitcoin Celebrates Its 11th Birthday With a 6% Price Surge to Over $7400

Siamak Masnavi

On Friday (January 3), Bitcoin celebrated the 11th anniversary of the mining of the genesis block by strongly bouncing back from the intraday low of $6,886, which had been reached at 01:55 UTC:

BTC-USD - One Day Chart - 3 Jan 2020.png

That's when Bitcoin's price rally started, and by 16:55 UTC, Bitcoin had gone up over $512 or 7.43%.

Su Zhu, Co-Founder, CIO, and CEO of Singapore-based crypto-focused hedge fund Three Arrows Capital, said that the fact that Bitcoin started rallying around the same time as gold and oil gave further support to the theory that Bitcoin is a macro hedge:

However, not everyone was ready to attribute Bitcoin's price surge to rising geopolitical tensions in the Middle East.

For example, here is crypto analyst/trader and macro economist Alex Krüger with his take on the subject:

Across the crypto space, many people were today celebrating Bitcoin's 11th birthday (i.e. it was on 3 January 2009 when Satoshi mined the genesis block):

At the time of writing (18:03 UTC), according to data from CryptoCompare, Bitcoin is trading at $7,358, up 5.68% in the past 24-hour period:

BTC-USD Fancy Chart on 3 Jan 2020.png

 

Featured Image Credit: Photo via Pixabay.com