Tyler Winklevoss, who has been proactively invested in bitcoin with his brother almost from the start, said in a recent report that he feels the currency will skyrocket over time.
Pointing to the fact that bitcoin is slowly gaining legitimate recognition as a store of value, Tyler Winklevoss noted that the current gold market is worth $7 trillion. Moreover, he expressed that he saw no reason why the coin’s fundamental value could not one day equal or exceed current value stores – and dubbed criticism of the cryptocurrency as a “failure of the imagination.”
A top-end prediction with credibility
Indeed, Winklevoss’ comments have legitimacy, with the brothers being the first investors to reach billionaire status in December 2017 from their bitcoin purchases.
Unlike many commentators who occupy the giddy heights of predicting $50,000 to $100,000 a coin for 2018, the Winklevoss twins have an extensive vested interest in the cryptocurrency. The brothers have also ridden out the cryptocurrency’s storms and have a measured, substantiated approach to future predictions.
While an escalation of 40 times the current value may seem unimaginable at present, Tyler was confident in his comments when he said “Taking bitcoin in isolation … we believe bitcoin disrupts gold. We think it’s a better gold if you look at the properties of money.”
Bitcoin’s market capitalization currently sits at approximately $145 billion. A 40-fold increase in value would take it well over $5 trillion.
Pointing to fundamentals, he asked, “What makes gold, gold? Scarcity. Bitcoin is actually fixed in supply, so it’s better than scarce…”
The rationale behind his reasoning is sound. It’s the same platform that buoys current blue chips and the global perception of value in today’s markets. Bitcoin also has the portability, fungibility, and durability that will enable its rise as a sort of “better gold” all round going forward, Winklevoss told CNBC.
Now is not the time to short Bitcoin
Calling the current bitcoin dynamics indicative of a “buying opportunity,” Winklevoss spoke out at the CNBC-hosted MENA Summit in Abu Dhabi this week. When pressed for the logic behind his predictions, Tyler Winklevoss pointed to the recent dip in bitcoin as an opportunity to buy in for the long term.
He stated that his 30 to 40 times appreciation figures were based on modern-day observations. Noting the $7 trillion gold market today, he said that people are starting to get a long-term, overall view beyond current hype surrounding bitcoin. Saying that “regardless of the price moves in the last few weeks, it’s still a very under-appreciated asset,” his voice brought some well-founded and positive commentary to the often-frenetic activity around bitcoin.
Avoiding a short-term prediction, Winklevoss reiterated that he and his brother were taking a ten- to 20-year view and that this is what informed his appraisal. His words are in stark contrast to other headline comments from credible sources, with Warren Buffet predicting a “bad ending” for cryptocurrencies.
Goldman Sachs circulated a note this week expressing their sentiment that the vast majority of cryptocurrencies would crash and one day be worthless, yet Winklevoss hit back at the doomsayers, referencing the IoT and imagining a future world:
Insistent on the changes predicted from many quarters as humanity goes into the 21st century, he added that machines are “not going to open bank accounts at J.P. Morgan … those were invented by bankers before the internet existed. Trying to use them as payments or money on the internet is a square peg in a round hole at best.”