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Gemini co-founder doubles down on Bitcoin hitting $500K within this decade

Updated: Aug 31, 2024
Published: Jan 1, 2021
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Tyler Winklevoss, the co-founder and CEO of cryptocurrency exchange Gemini, has doubled down on his projection that bitcoin will reach $500,000 within this decade. 

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In a New Year’s post, Winklevoss pointed out that “2020 has been a year like no other.” This is so true on so many as 2020, thanks to the ongoing global coronavirus pandemic, altered the way people live, work, and play.

But Tyler’s final thoughts of the year were on bitcoin. He and his twin brother, Cameron, invested in bitcoin in its early days and hit the jackpot as the digital asset’s price appreciated in value over time. 

The pair are the subject of Ben Mezrich’s book Bitcoin Billionaires which could potentially be turned into a movie.

Winklevoss first made the prediction in August in which he highlighted that gold and oil have historically functioned as reliable stores of value. Their scarcity makes them reliable hedges to the inflation of fiat currencies.

He explains that the U.S. dollar has been a reliable store of value for the last 75 years. This is mainly due to the currency’s good management by the Federal Reserve and the reputation that the U.S. economy.

The U.S. dollar is widely recognized as the global reserve currency.

There are problems that make bitcoin an appealing store of value

However, there are still problems with gold, oil, and the U.S dollar and as a result, bitcoin could potentially become the only long-term hedge against inflation, argues Tyler.

Oil can no longer be regarded as a store of value because of demand and supply. Technological advancements in new methods of obtaining oil have increased its supply. At the same time, the global demand for oil could take a hit due to several factors.

In April 2020, the demand for oil dropped so low that oil holders had to pay people to take oil out of their hands. The price of oil was negative.

The same argument can be made for gold. The supply of gold is unknown and new innovations can lead to increased supply.The U.S. dollar is also losing its value due as the government prints more money to stimulate the economy, like what is currently happening with the coronavirus stimulus checks.

Bitcoin to the moon

Bitcoin, which enjoyed bullish momentum in December, only has a market cap of $546 billion against gold’s $10 trillion. 

Tyler points out that bitcoin is undervalued and if it has to match gold’s market, then it has to appreciate 45 times. 

This takes the price of a single bitcoin to $500,000.

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