Crypto billionaire Cameron Winklevoss believes that bitcoin could be worth up to 40 times its current value, eventually boasting a market capitalization of over $5 trillion.
Bitcoin is a decentralized, encrypted digital currency, i.e., a cryptocurrency. It operates without a central bank.
Winklevoss compared the digital currency, which he said is “a very underappreciated asset”, to gold in a recent CNBC-hosted chat at the Milken Institute’s MENA Summit.
Cameron and his brother Tyler did not set a specific timeline on the prediction, however, they said they’re taking the 10-to-20 year view.
“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. Its sort of equals a better gold across the board,” Cameron told CNBC.
“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.”
Tyler Winklevoss said in a seperate interview on Bloomberg Television that he does not fear regulation of the sector. On the contrary, he believes that “thoughtful” regulation could be a “win” for cryptocurrencies.
“These technologies can’t flourish and grow without thoughtful regulation that connects them to finance,” Tyler Winklevoss told Bloomberg. “As long as jurisdictions strike the right balance, we think that its going to be a huge boon and win for cryptocurrencies.”
Video – Definition of Cryptocurrency
We read and hear about cryptocurrencies on TV, newspapers, and other media. We know that bitcoin is a currency in that category. However, most people do not fully understand how cryptocurrencies work. This easy-to-understand Market Business News video explains.