Tyler Winklevoss, one of the first known Bitcoin billionaires (BTC) and co-founder of Gemini, believes that Bitcoin’s ultimate bullish scenario means reaching a price of $500,000.
The theory of a long-term Bitcoin price of $500,000 is very simple. Winklevoss believes that Bitcoin could surpass gold as the main safe haven asset in the global market.
Mexico: Bitso Offers Promotion and Gives away IADs for an Hour
Given that gold’s market capitalization is estimated at about $9 trillion, while Bitcoin’s is valued at about $200 billion, this could generate more growth.
Does Bitcoin have what it takes to potentially beat gold?
Investors have relied on three valuable reserves for many decades – gold, oil and the US dollar. But each has distinct weaknesses.
The advantages of Bitcoin over gold
Gold and oil are difficult to transport and store. But most importantly, both have no fixed supply.
A myth? Let’s see why the expiration of CME’s Bitcoin futures is irrelevant
As such, if a large supply of both assets is discovered, although the likelihood of this happening is miniscule, it could have a negative impact on their value.
“Today, gold is a reliable store of value and the classic hedge against inflation. Supply. The supply of gold is actually unknown. While gold remains scarce or ‘precious’ on planet Earth, the same cannot be said for our galaxy.
The biggest problem with the US dollar is inflation and the stability of its value. As seen in its performance over the past four months, fear of inflation and economic uncertainty could destabilize the dollar for long periods.
Bitcoin price reaches USD 11,600 when the Fed announces that it will let inflation exceed 2%
If inflation were to occur in the long term, Winklevoss noted that gold or Bitcoin could exceed the capital stored in banks. He added:
“Inflation is coming. Money stored in a bank will be run over. Money invested in assets such as real estate or the stock market will follow that pace. Money stored in gold or bitcoin will survive the scourge. And money stored in bitcoin will be the fastest, outpacing gold.
With bitcoin, inflation is impossible because of its fixed supply of 21 million. Unlike gold and oil, it will always be scarce, easy to transport and store. Given these characteristics of Bitcoin Up, Winklevoss said he believes Bitcoin is the “only long-term protection against inflation.