Over the last few months, Bitcoin has experienced an incredibly powerful rally that has taken it from the range of $10,000 to $29,000. The crypto currency has been up ever higher since the beginning of the year.
While several investors are now up on their BTC investment, on a macro scale, there are still hopes of upside. This comes despite increased concerns of a short-term correction, when the market could have been overheated in just a month after rising 100 percent. Tyler Winklevoss doubled down on a prediction that he and his twin brother made, which states that BTC could hit $500,000 in the years ahead.
Here’s why the duo, who run the Gemini crypto exchange collectively, think so.
The two clarified in this almost always report that, over time, Bitcoin is expected to be a better investment than gold. They genuinely assume that over time, BTC will exceed the market capitalization of gold as capital floods from that market to this new one:
“Bitcoin has already made significant ground on gold — going from whitepaper to over $200 billion in market capitalization in under a decade. Today, the market capitalization of above-ground gold is conservatively $9 trillion. If we are right about using a gold framework to value BTC, and BTCcontinues on this path, then the bull case scenario for bitcoin is that it is undervalued by a multiple of 45. Said differently, the price of BTCcould appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per BTC.”They have added that there is immense value in a capital flight from traditional investments into Bitcoin over time, which could cause a move over $500,000: “If central banks start to diversify their foreign fiat holdings even partially into bitcoin, say 10%, then 45x gets revised upward towards 55x or $600,000 USD per bitcoin, and so forth.”