The Winklevoss Twins believe that bitcoin will surpass the $7 trillion gold market cap. Tyler and Cameron Winklevoss, the infamous twins that took on Facebook, entered the crypto-sphere in 2013 and are now worth more than $1 billion in bitcoin.
In 2018, bitcoin fell from its all-time high to $3,993 at the time of writing, but the Winklevoss Twins predict that the new asset class is set to boom again.
“Bitcoin is certainly the OG crypto! It’s hard to defeat network effects — so in terms of ‘hard money’ (i.e., store of value) bitcoin is most likely the winner in the long term,” Cameron Winklevoss said in a Reddit Ask Me Anything session on Monday. Cameron predicts bitcoin will disrupt gold based on its durability and portability.
The recent claims echo the twins’ previous sentiments. In Feburary 2018, Cameron explained, “Taking bitcoin in isolation … we believe bitcoin disrupts gold. We think it’s a better gold if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it’s better than scarce … it’s more portable, its fungible, it’s more durable. It sort of equals a better gold across the board.”
According to Cameron, Bitcoin could grow up to a market capitalization of $7 trillion. Such increase mirrors gold. This implies a “potential appreciation of 30 to 40 times”. This estimated growth would drive one Bitcoin to the region of $320,000 creating a minimum market cap of $4 trillion. At present, Bitcoin has a market capitalization of $135 billion.
“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 explains further.
Tyler shares his brother’s view, holding the belief that cryptocurrencies will eventually supplant fiat currency as the dominant exchange vehicle.
“Cryptocurrencies aren’t really important for human-to-human transactions,” Tyler stated, adding, “but when machines-to-machines trade economic value, they are going to plug into protocols like Bitcoin and Ethereum.”
Bitcoin so far in 2019 has not produced strong upward price movement, casually hanging in the $4000 region, and analysts predict Bitcoin could even fall under before any robust surge occurs.