Gemini’s co-founders spoke in CNBC only before Bitcoin saw a record peak of 8.7percent on Monday. The coin is currently almost $19,000, but the Winklevoss’s said bitcoin still has a long way to run. If more people accept the cryptocurrency as an inflation hedge, early bitcoin investors and owners of crypto-exchange Gemini, Tyler and Cameron Winklevoss, see bitcoin gaining more than 25 times its existing valuation.
“Our thesis is that bitcoin is gold 2.0, that it will disrupt gold, and if it does that, it has to have a market cap of 9 trillion, so we think it could price one day at $500,000 of bitcoin,” Tyler Winklevoss said. “So at $18,000 bitcoin, it’s a hold or at least if you don’t have any, it’s a buy opportunity because we think there’s a 25x from here.”
Bitcoin has surged over 177% year-to-date as of Monday. Cameron Winklevoss clarified that the spike is due to a rising number of investors discovering that the safest protection against inflation is bitcoin. Although gold has traditionally been a go-to inflation hedge, bitcoin promises even higher returns, he said. “A lot of people are realizing that bitcoin is the best defense and offers the opportunity for an asymmetric return of something like 25 to 40x from here, and I don’t think there’s an asset in the universe that can credibly offer that kind of potential and protect against inflation,” said Cameron Winklevoss.
The brothers added that Bitcoin is an emerging store of value and that it does not need to be an ubiquitous medium of trade to continue to expand. “no one uses gold to buy coffee,” Tyler Winklevoss said, and however precious metal has a $9 trillion capital investment, as it is seen by investors as a value store. The investor said Bitcoin would grow to be a better store of value, particularly because it is more durable and easier to transport than gold. If Bitcoin can also be used as a currency, which isn’t off the table, it could surge even higher than $500,000, said Tyler Winklevoss.