Winklevoss twins say Bitcoin would be the greatest performing asset of the last decade
Cameron (L) and Tyler (R) Winklevoss.
Adam Jeffery | CNBC
Early Bitcoin investors and founders of the Gemini cryptocurrency exchange, Tyler and Cameron Winklevoss, see Bitcoin gaining more than 25 times its current value as more investors use the cryptocurrency as an inflation hedge.
“We believe this will be the best performance of the current decade,” said Tyler Winklevoss in an interview with Seema Mody on CNBC’s “Squawk Box” on Monday.
“Our thesis is that Bitcoin is Gold 2.0 and will disrupt gold. If so, it must have a market cap of $ 9 trillion. So we believe that one day Bitcoin will price $ 500,000 per Bitcoin So at $ 18,000, Bitcoin is a hold, or if you don’t have an opportunity to buy because we think it’s 25x from here, “Tyler explained.
The twins made a similar statement to CNBC about cryptocurrency last year.
Bitcoin price rose 5% to over $ 19,000 on Monday as investors continue to return to cryptocurrency in 2020. The price of Bitcoin was trading around $ 19,022, according to industry website CoinDesk. The cryptocurrency climbed near the USD 20,000 mark for the first time in December 2017. It collapsed soon after and had only recovered to the $ 18,000 level in the past few weeks.
The asset is up over 160% this year, thanks to the interest of big-name investors like Paul Tudor Jones and Stanley Druckermiller. Fintech giants Square and PayPal have lowered the barrier to entry for the asset.
“I think a lot of these are investors who come in and realize that inflation is a specter of inflation out there, and how do you protect yourself from it? I think there isn’t much debate about all of the debt that is in the US Money pressures have increased, how do you defend yourself against it? ”added Cameron Winklevoss. “I think a lot of people are starting to realize that bitcoin really is the best defense, with the potential for asymmetrical returns of around 25 to 40x. I don’t think there is any asset in the universe that can be credible this type of Potential and protection from inflation. “
The Winklevoss twins said gold has historically been the classic hedge, but Bitcoin moves as Gold 2.0.
“It doesn’t really have to be a great medium of exchange, it just has to be better than gold and it’s better across the board. So Bitcoin is fixed at 21 million. Gold is scarce. Bitcoin software can be.” Gold is sent over the Internet like email and is difficult to transport, “said Cameron Winklevoss.
The total number of bitcoins ever produced is capped at 21 million. The digital asset experienced a key technical event in the spring known as the “halving”. The number of Bitcoins given to the so-called “miners” who record Bitcoin transactions in their public ledger has been halved.
The Winklevoss twins aren’t concerned about regulatory headwinds for the digital asset.
“In 2013 there was a question of whether Bitcoin would be banned. We are far from it. We believed in healthy, well-thought-out regulation. We don’t see this not going on. We think Bitcoin is here to stay I think careful regulation in the US and other sophisticated jurisdictions is here to stay too, “said Tyler Winklevoss.
“Bitcoin is still the best performing asset of the year when compared to stocks,” he added.
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