Both Winklevoss double down on the $500,000 BTC call as the coin enjoyed a strong rally in the past few months which brought it from the $10,000 region to almost $30,000 as we reported in the bitcoin news.
Many investors are up on their investments in BTC and there are still expectations of the upside on a macro level. This came in spite of growing concerns in the short-term corrections as the market could have become overheated after it hit 100% in a month’s time. Both Winklevoss twins commented on the long-term expectations of Bitcoin’s price action and doubled down on the prediction that the coin could still hit $500,000 in the years ahead.
2020 has been a year like no other. I’ll leave you with my final thought of the year — #Bitcoin will break 500k within this decade. Below are my thoughts.
Here’s to turning the corner in 2021. Happy New Year! 🎊 🍾 🥂 🎈 💥 https://t.co/scnBM5DcIn
— Tyler Winklevoss (@tyler) January 1, 2021
In the report, the two twins explained that BTC will likely be a better investment than gold in time and they also believe that BTC will surpass gold’s market cap over time as capital floods from the market. BTC made significant ground on gold and grew from a whitepaper to more than $200 billion in market cap in less than 10 years. The market capitalization above gold is conservatively over $9 trillion so the bull case scenario for Bitcoin is undervalued by about 45.
The price of BTC could even increase 45 times from where it is today which means that we could expect a price of $500,000 USD per coin. They added that there’s immense value in a capital flight from the traditional investments into BTC over time which could lead the asset above $500,000:
“If central banks start to diversify their foreign fiat holdings even partially into bitcoin, say 10%, then 45x gets revised upward towards 55x or $600,000 USD per bitcoin, and so forth.”
Many agreed with the Winklevoss Twins that BTC is superior to gold as an investment in the macroeconomic environment. Rick Rieder who is the CIO of the world’s biggest asset manager said that he believes BTC will have a staying power and will perform better than gold. He said that it is mainly because of the amount of millennial and younger investors which prefer BTC investments over gold investments. Other asset managers touched on this as well and argued that BTC represents the best investment opportunity ever and chances of a strong rally as bigger than ever.
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