
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.
2020 has been a year like no other. I’ll leave you with my final thought of the year — #Bitcoin will break 500k within this decade. Below are my thoughts.
Here’s to turning the corner in 2021. Happy New Year! 🎊 🍾 🥂 🎈 💥 https://t.co/scnBM5DcIn— Tyler Winklevoss (@tyler) January 1, 2021
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.
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.
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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