Why Bitcoin could reach $500,000
- 29th August 2020
- Posted by: Hakeem
- Category: CryptoCurrency
It’s no longer news that the world’s most valuable crypto has become a trending financial instrument. Just recently, the founders of a leading American crypto exchange, Tyler and Cameron Winklevoss, gave an in-depth analysis on how Bitcoin could be worth over $500,000, within a couple of years.
If global central banks start to diversify their foreign fiat holdings into crypto, say 10%, then 45x gets revised upward towards 55x or $600,000 USD per bitcoin.
Tyler and Cameron Winklevoss went on to discuss major fundamental factors such as the likely return of higher Inflation. Cash stored in banks, according to them, will get run over.
Money invested in assets like real estate or the stock market will keep pace. Money stored in gold or bitcoin will outrun the scourge. And money stored in bitcoin will run the fastest, overtaking gold.
The Gemini Exchange founders further illustrated the advantages bitcoin had by saying:
“Bitcoin has a significant first-mover advantage not only because it’s the first crypto as we know it, but because it was the first one with a gold-like store of value properties.
“As such, it enjoys tremendous network effects (not dissimilar to those experienced by social networks like Facebook and Twitter) due to its vibrant community of users, developers, miners, exchanges, custodians, etc.
“Nothing demonstrates this better than the fact that Bitcoin is an open-source project that can be copied or forked by anyone in the world at any moment. And yet despite being forked many times over the years, it remains the dominant crypto (store of value or otherwise) both in terms of market capitalization and liquidity. This race is Bitcoin’s to lose.”
The Winklevoss brothers also spoke about the exponential growth in the world’s flagship Gemini Exchange market, by concluding with:
“Bitcoin has already made significant ground on gold — going from whitepaper to over $200 billion in market capitalization in under a decade.
“Today, the market capitalization of above-ground gold is conservatively worth $9 trillion.
“If we are right about using a gold framework to value bitcoin, and bitcoin continues on this path, then the bull case scenario for bitcoin is that it is undervalued by a multiple of 45.”