Tyler Winklevoss: Bitcoin could reach $ 500,000 if current market conditions will continue
2 min readAmerican cryptocurrency and Bitcoin investor Tyler Winklevoss, founder of Winklevoss Capital Management and the Gemini Crypto Exchange, outlined his thoughts on the future market price of Bitcoins.
According to his analysis, which is based on the golden framework for valuing Bitcoins, he believes that the market price of BTC is ready at $ 500,000 if market conditions will continue. Tyler said:
“If we are right about using a gold framework to value Bitcoin, and Bitcoin continues 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 Bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per Bitcoin”.
Tyler Winklevoss and his model
According to his theory, all indicators indicate that the Bitcoins will overtake gold in the future as a global safe store of value. The market capitalization of gold is estimated at $ 9 trillion, while for Bitcoins the value at the time of writing is approximately $ 200 billion. Once the market capitalization of BTC reaches the market cap value of gold, it could cause 45 times the market price of BTC.
According to Tyler Winklevoss’ analogy, the gold supply is currently limited by the ability of people to mine it from Earth. However, he continued that in a galaxy where humanity is progressing rapidly, there is no limit to the supply of gold. He explained:
“Currently, gold is a reliable store of value and the classic inflation hedge. Supply. The supply of gold is actually unknown. While gold remains scarce or ‘precious’ on planet Earth, the same cannot be said with respect to our galaxy”.
Another factor that Tyler thinks poses a huge challenge to the sharp rise in Bitcoin prices is the looming inflation of the global currency. Given the unlimited dollar supply that the Fed has increased in recent months with its printing speed to mitigate the market impact of the COVID-19 pandemic, the future price of Bitcoins, which is strongly supported by fixed supply, will continue to rise. Tyler stressed:
“Inflation is coming. Money stored in a bank will get run over. Money invested in assets like real estate or the stock market will keep pace. Money stored in gold or bitcoin will outrun the scourge. And money stored in bitcoin will run the fastest, overtaking gold”.
What do you think of Tyler Winklevoss’ prediction?
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