Twins Cameron and Tyler Winklevoss, co-founders of the US exchange office and family office of Gemini Winklevoss Capital, predict that price BTC could reach $ 500,000. What to look for behind this very bold prediction?
It is a sad fact that the US debt-to-GDP ratio could increase more in 2020 than it has in the last ten years. It is, of course, related to this the question of inflation and investors will try to shift their assets to alternative investments, such as cryptocurrencies.
Bitcoin as the best choice of appreciation
Report, published under the heading of the company Winklevoss Capital begins by explaining that gold, oil and the US dollar are quite reliable values. However, times are changing and are no longer as reliable as before. Thus, in the end, Bitcoin is the only long-term protection against inflation. The brothers state in the report:
“Inflation is coming. Money deposited in the bank loses its value. Money invested in assets such as real estate or the stock market will retain its value. Money stored in gold or bitcoin will be valued. And the money stored in bitcoins will be valued the most and will overtake the gold. “
What are the shortcomings of gold, oil or the dollar?
The report further explains its shortcomings gold, oil or USD as a store of value. As far as oil is concerned, the idea of scarcity no longer applies and there is more oil underground than originally thought. In addition, demand for it may also be affected by renewable energy and measures to reduce global warming.
Gold, on the other hand, has a fundamental mistake in that its overall supply is unknown. Although this precious metal is rare on Earth, the galaxy is full of it. And with commercial mining on asteroids, thanks to such individuals as it is needed Elon Musk, it will definitely happen, the gold supply will change very quickly. By the way, currently the total market capitalization of above-ground gold is conservatively estimated at around $ 9 trillion.
Well, if we’re talking about the US dollar, then there printing new money will continue at a rapid pace and this will only lead to inflation.
Bitcoin is underestimated by a factor of 45
If we tried to apply gold to the BTC value, the twins say that if Bitcoin continued in the established bullish trend, so currently BTC is undervalued by a factor of 45. In other words, the price of BTC could rise 45x, which means that we could see the price of $ 500,000 for one BTC coin.
The forecast goes on to say that it does not take into account the possibility that BTC will replace the $ 11.7 trillion share of foreign exchange fiat reserves held by governments around the world. And the brothers add:
“If central banks start to diversify their foreign fiat stakes in part to Bitcoin, say 10 percent, then it is revised 45 times upwards to 55 times, or $ 600k per BTC.”
Conclusion
The Winklevoss brothers, who are behind the Gemini cryptocurrency exchange and have invested heavily in Bitcoin since it cost around $ 120, are big bitcoin enthusiasts and promoters. Although the price predicted by them may seem “out of place”, I certainly would not take their arguments lightly, you really rich on the other hand, they do not have so many options for protecting or valuing their property even more.
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