It is without a doubt that Bitcoin has gone a long way ever since its conception in 2009. With its price increasing by over 2,000% in 2017 alone, the pioneer cryptocurrency has shown its potential to grow and mature as a peer-to-peer electronic cash system.
However, the “market crash” last month has instilled seeds of doubt and uncertainty in the minds of Bitcoin investors. In fact, many worry that the replacement of Bitcoin is inevitable since there are so many alt-coins out there that are much more efficient and instantaneous than Bitcoin.
Nevertheless, Bitcoin bulls Cameron and Tyler Winklewoss think that the gold standard of Bitcoin still has a long way to go.
Buy The Dip
After the massive correction last week, the price of one Bitcoin is just over $8,000. But, according to the Winklewoss twins, investors can expect the value of the virtual currency to go up by 40 times “someday” and that the market slump is “actually a buying opportunity”.
At the Milken Institute’s MENA Summit last week, Cameron Winklewoss made a rather bold prediction to CNBC while claiming that Bitcoin is better than gold.
“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’s sort of equals a better gold across the board.”
Source: ABC News
According to his logic, Winklewoss believes that since Bitcoin has so many advantages over physical gold, it will not be surprising if the market cap for all cryptocurrencies surpasses that of gold one day.
“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 under-appreciated asset.”
If this happens, Bitcoin’s market cap will surge up to $5. 4 trillion – just over $2 trillion short of the total market cap for gold. According to CNBC, the Winklevoss brothers believes that this will happen within the next 10 to 20 years.