Winklevoss Twins: Bitcoin could hit $500,000 in the future

The Winklevoss brothers have detailed their vision of the price of Bitcoin (BTC) and according to them, BTC could hit $500,000 in the future.

Dollar, oil and gold: unreliable reserves according to the Winklevoss

In a lengthy analysis published on their site, the Winklevoss brothers compare Bitcoin to three major assets: the dollar (USD), oil and gold. According to them, the world economy will be completely weakened by the COVID-19 crisis.

For the dollar in particular, “the Fed has printed two-thirds more money over the past 6 months than it has printed over the past 11 years”. The backlash will therefore be significant, and the Winklevoss see high inflation on the horizon. This is why according to them, the dollar will quickly lose its status as a store of value, which it had retained until then. Regarding oil, the brothers recall that new technologies have made it possible to discover more deposits than what was once estimated.

The theory according to which the drilling will come to an end soon – with depletion of stocks – is therefore gradually being discarded. Additionally, the physical nature of the barrels makes them particularly vulnerable to geopolitical changes.

Finally, the founders of Gemini compare Bitcoin to gold. They believe that a big problem with gold is its total supply, which remains unknown. In addition, it is difficult to hold and move, unlike a cryptocurrency. If its status as a protector against inflation is undeniable, it is now overtaken by Bitcoin, according to the Winklevoss.

>> Discover where to buy Bitcoin cheap.

The Winklevoss are betting everything on the future of Bitcoin

Based on this principle, the Winklevoss believe that Bitcoin is a more efficient “gold” than the gold on which current protection strategies are based. They explain:

Like all technology, money can always be improved and changed. Humans have evolved money from its inception, crypto is simply its latest iteration.

Hence this Winklevoss argument: Bitcoin is the only long-term protection against inflation:

Inflation is coming. Money stored in a bank will be overwritten. Money invested intangible assets like real estate and B bear suivr has rhythm. Money stored in gold or Bitcoin will escape the scourge. And the money stored in Bitcoin will escape the best, overtaking gold.

Bitcoin at $500,000 according to Winklevoss

The Winklevoss, therefore, analyze the future of Bitcoin by comparing its progress with that of gold. BTC started from scratch to reach a market cap of over $200 billion in less than a decade.

As for the gold market cap, it currently exceeds $9 trillion. If we use the gold model to predict the progression of BTC, we can therefore estimate that it can reach a value 45 times higher than what it is currently experiencing. Conclusion, according to the Winklevoss:

We could see a price of US $500,000 per bitcoin.

The Winklevoss are staunch supporters of Bitcoin, having become billionaires through cryptocurrency. This analysis should therefore be taken with caution. But what is certain is that the current crisis, which has pushed major economies to print money, will have an undeniable impact on Bitcoin and cryptocurrencies. How far this will take the asset is of course still to be determined.