Investing in Bitcoin Is 'Not as Crazy as Sitting on the Sidelines’, Says Cameron Winklevoss

Francisco Memoria

Cameron Winklevoss, a co-founder of the popular cryptocurrency exchange Gemini, has recently argued that while it may be crazy to invest in bitcoin, the flagship cryptocurrency, it isn’t “as crazy as sitting on the sidelines.”

This, he added, as he believes the future of money “is literally being built” before our eyes, and presumably taking the risk of investing in BTC may pay off tremendously if the cryptocurrency achieves mass adoption.

Responding to some users who revealed they wished they knew about the cryptocurrency space years ago, before its 2017 bull run that saw most cryptos hit a new all-time high, the Winklevoss twin revealed he believes it’s “still early” to be in the space.

Most cryptocurrency users believe the space has the potential to disrupt the traditional financial industry and allow people to control their own money. Earlier this month Cameron’s brother, Tyler Winklevoss, called bitcoin “gold 2.0” and suggest the crypto’s market cap has a lot more room to grow.

This, as he believes BTC is a digital equivalent of gold, better than physical gold itself. This means it has the potential to surpass gold’s $7 trillion market cap.

The Winklevoss twins are well-known bitcoin bulls. Back in February of 2018, when the flagship cryptocurrency was still trading at around $10,000, they claimed BTC had the potential to grow 30 to 40 times to achieve a $5 trillion market cap.

Their cryptocurrency exchange Gemini has been running an ad campaign calling or “crypto without chaos.” Essentially, the campaign is calling for cryptocurrency regulations due to the necessity of a “bridge” between the traditional financial system and the cryptocurrency space.

BTC Now Below $8300, but Tom Lee Says ‘2020 Should Be Great for Bitcoin’

Siamak Masnavi

On Thursday (January 23), Thomas Lee, Co-Founder, Managing Partner, and the Head of Research at independent research boutique Fundstrat Global Advisors, while appearing as a guest on CNBC's post-market show "Fast Money", predicted that "2020 Should Be Great for Bitcoin" and explained why.

According to data from CryptoCompare, at press time (around 10:20 UTC on January 24), Bitcoin is trading at $8,273:

BTC-USD 24 Hour Chart on 24 Jan 2020.png

This is the first time that Bitcoin has traded below the $8,300 level since January 14, as you can see in the two-week BTC-USD price chart shown below:

BTC-USD 2 Week Chart on 24 Jan 2020.png

Since Bitcoin reached $9,151 at 01:00 (UTC) last Sunday (January 19), the BTC price has been steadily falling, perhaps in anticipation of the "traditional" slowdown in Bitcoin trading around the time of the Chinese New Year (which, this year, starts on 25 January 2020 and ends on 11 February 2021). This expected drop in Bitcoin trading volumes was something that Arthur Hayes, Co-Founder and CEO of crypto derivatives exchange BitMEX, predicted in a tweet he sent out yesterday:

However, Lee, does not seem concerned about the currently falling prices of Bitcoin and altcoins in the crypto market.

Lee, who was appearing on Fast Money to give his views on the stock, bond, and crypto markets, was asked by the shows's host, CNBC news anchor Brian Sullivan, if he was still bullish on Bitcoin.

Lee replied:

"Yeah, 2020 should be great for Bitcoin because you got number one the halvening happening -- the block reward for miners getting cut in half -- that's a good supply demand change. I think last year the White House killed the Bitcoin rally with their opposition, but with the presidential election cycle underway, it's not gonna be in the headlines, and that's bullish for Bitcoin. And then with geopolitical tensions in the Middle East, I think that's good for crypto... We're getting a lot more interest in it from our clients."

It is worth remembering that two weeks ago Lee tweeted about a report he had published on January 9 about the outlook for crypto in 2020. According to this report, there are three positive convergences/catalysts for Bitcoin in 2020:

  • Bitcoin halving/halvening (which is expected to take place around 12 May 2020).
  • Geopolitical tensions in the Middle East.
  • 2020 U.S. Presidential Election

Lee said at the time that the bottom line is that "financial markets tend to discount 1-3 months, and maybe 6 months (max)" and therefore the "highest probability is halvening not priced in."