Bitcoin can reach $500,000 and the 2020 rally is not like that of 2017, the Winklevoss twins are convinced and have stated this during an interview with CNBC.
The occasion was the Squawk Box Asia event held in recent days, organized by CNBC during the Singapore Fintech Festival.
Tyler Winklevoss spoke about the similarity between the 2017 and 2020 rallies. In both cases, Bitcoin was close to $20,000. But in 2017 the precipitous climb was followed by an equally rapid descent that burst the speculative bubble. Will it happen again?
“This is not a rally driven by retail investors. These are the most sophisticated investors, the smartest people in the room, buying the bitcoin quietly. It’s not a FOMO thing, so it’s very different than 2017. This cast of characters, these companies, these investors were not in bitcoin back then.”.
Tyler Winklevoss added:
“We see Bitcoin as an emerging value reserve that could turn gold upside down to $3 trillion market cap and therefore should not be used as currency. The more mature it becomes, the less volatility there will be”.
After all, the founder of the Gemini exchange thinks that Bitcoin, just as gold, is not a currency, so much so that no one pays for dinners and coffee using gold.
Cameron Winklevoss at CNBC: Bitcoin will be worth 25-30 times today’s value
Cameron Winklevoss was also associated with these considerations:
“We see Bitcoin as an emerging store of value that could disrupt gold and reach a $9 trillion market cap, hence it doesn’t have to be used as currency. The more mature it becomes, the less volatility there will be”.
This is a concept that Cameron also reiterated in a tweet:
“Bitcoin will overtake gold. I can’t say when, but I can say within the next decade.
Bitcoin grew 60x in the past 5 years. To overtake gold it will need to grow 25x in the next 10 years — in other words, grow half as much in twice as much time”.
Basically, according to the twins who founded the Gemini exchange, the price of Bitcoin this time is driven by another type of investor. While in 2017 most were retail, this time it is the institutional giants who are buying Bitcoin. It will be precisely the inflow of capital of this kind that will sustain demand, increase the market cap and thus raise the price.
What is certain is that Bitcoin, amidst gains and retracements, is back again at $19,000. The future will determine whether the predictions made by the Winklevoss twins are correct or whether 2017 will repeat itself.