The famous Winklevoss twins think that the price of the dominant coin Bitcoin (BTC) could reach half a million in the future. Named Tyler and Cameron, the twins have doubled down on the price of BTC in the future. The noted Internet entrepreneurs and crypto billionaires are again in the Bitcoin news as they believe that the weakness in the US financial system is what could mean that Bitcoin could reach $500,000 per coin in the near future.
A post on the Winklevoss Capital blog on Thursday shows this in detail. The two set out how, while historically strong, there are many “fundamental problems” with gold, oil, and the US dollar being the stores of value.
The twins point to government money printing in the trillions and borrowing between government departments (as the Federal Reserve buys billions in debt fro the Treasury) as some of the main factors that could lead to inflation in the future. As they wrote on the site:
“Even before COVID-19, and despite the longest bull run in U.S. economic history, the government was spending money like a drunken sailor, cutting taxes like Crazy Eddie, and printing money like a banana republic,” the brothers write.
The arrival of the novel coronavirus epidemic is why the Winklevoss twins think that the US debt-to-GDP ratio will be raised more this year compared to the last 10 years. Some available solutions to this debt include a soft default, austerity or a hard default. All of these are not pretty, according to the post, and would all bring inflationary pressure and many other issues.
“While [COVID-19] has hurled us further down the path towards a soft default, the greater culprit is the U.S. government’s permanent and unapologetic policy shift towards a debt-monetization model to finance its operations,” the Winklevoss twins think.
Moving on in their post, they talk about oil and gold and how they both have issues, too. According to them, oil suffers from the fact that there is more supply than demand, while gold suffers from being notoriously difficult to transport, especially during a pandemic.
The twins say that Bitcoin, or the “native internet money” fixes such issues.
“Bitcoin is not just a scarce commodity, it’s the only known commodity in the universe that has a deterministic and fixed supply. It is ultimately the only long-term protection against inflation,” as they wrote.
Do you agree with the Winklevoss Bitcoin price prediction shared in the latest crypto news?
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