The Bitcoin price has the potential to rise 4,000 percent over the coming decades, enabling the flagship cryptocurrency to one day achieve a $4 trillion market cap.
That’s according to longtime Bitcoin bulls Cameron and Tyler Winklevoss, who first invested in Bitcoin when it was valued at $120 and became the first verified “Bitcoin billionaires.”
The twins have often compared Bitcoin favorably to gold, forecasting that the digital asset will disrupt the yellow metal, and Cameron Winklevoss said that the recent Bitcoin price decline has not caused him to waver from this optimistic prediction.
“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. It sort of equals a better gold across the board,” Winklevoss said during a CNBC-sponsored forum at the Milken Institute’s MENA Summit last Wednesday.
Based on this assessment, he said that Bitcoin could end up with a market capitalization similar to that of gold, which is currently valued at $7 trillion. Bitcoin, he predicted has a “potential appreciation of 30 to 40 times,” which would set the Bitcoin price above $320,000 and result in a circulating market cap of at least $4 trillion.
This, Winklevoss said, made Bitcoin’s recent correction an attractive buying opportunity:
“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.”
Of course, the Winklevoss Capital co-founder cautioned that this transfer of capital will not take place overnight but could come to fruition within the next 10 to 20 years.
His brother, Tyler, agreed with Cameron’s assessment that Bitcoin would disrupt gold, adding that he believes cryptocurrencies will ultimately replace fiat currency as the primary medium of exchange for machine-to-machine transactions.
“Cryptocurrencies aren’t really important for human-to-human transactions,” he said, “but when machines-to-machines trade economic value, they are going to plug into protocols like Bitcoin and Ethereum.”
He explained that, given the multitudinous applications of this technology, most critical analyses from Bitcoin skeptics are baseless.
“You know the criticisms [of Bitcoin] are just a failure of the imagination,” he concluded.
Featured image from Flickr.