If you think you’ve already missed bitcoin’s biggest price gains, think again. The Winklevoss Twins think bitcoin has plenty of room to run and is wildly undervalued at anything less than a $7 trillion market capitalization. For perspective, bitcoin's current market cap is $229 billion.…
If you think you’ve already missed bitcoin’s biggest price gains, think again. The Winklevoss Twins think bitcoin has plenty of room to run and is wildly undervalued at anything less than a $7 trillion market capitalization. For perspective, bitcoin’s current market cap is $229 billion.
Cameron and Tyler Winklevoss, who reportedly own 1 percent of all bitcoin outstanding, base their theory on BTC surprising the market cap of gold.
“Our thesis is that bitcoin is gold 2.0 and so until it has a market cap of $7 trillion, which is the size of gold, it’s a very under-valued asset, so I think people are waking up to that.” – via CNBC.
Bitcoin has long been considered “digital gold” or a store of value due to its scarce supply and lack of correlation to other market assets. But the digital gold narrative has strengthened throughout 2019.
Crypto fund Grayscale, which has more than $2.8 billion assets under management, recently launched a #DropGold campaign. It encourages investors to switch gold for bitcoin in their portfolio, something the Winklevoss Twins have also advocated.
The narrative is gaining traction. Even traditional Wall Street traders now advocate a 5 percent allocation to bitcoin:
“Usually in a portfolio, gold is about 5-10% of the portfolio so there’s nothing wrong with saying bitcoin couldn’t be 5-10% of a portfolio right now.” – Anthony Grisanti, via CNBC.
Back in 2013, the Winklevii took millions from their Facebook settlement and poured it into bitcoin. They invested in early crypto startup BitInstant and began accumulating 1 percent of all bitcoin supply. They since launched their own cryptocurrency exchange Gemini.
As CCN reported earlier, the twins believe the world’s biggest cryptocurrency is still in its early stages. Speaking at a panel discussion this week, they said:
“We still think it’s the bottom of the first inning.”
The Winklevoss twins famously settled with Mark Zuckerberg over claims the Facebook founder stole their social network idea. Do they have any advice for their former nemesis as he launches a cryptocurrency of his own?
“Talk with [regulators]. You know, we definitely went through the front door, and we tried to educate the regulators and shape the regulation in a thoughtful manner because if you get the regulation wrong it can stifle innovation.”
Cameron and Tyler Winklevoss have always advocated for a compliant approach to crypto. They were among the first to speak to New York regulators and launched a controversial campaign last year calling for “rules” in the bitcoin space.
Last modified: January 10, 2020 2:19 PM UTC