After losing steam from a rally last week, Bitcoin is up and kicking once more. The asset already broke its all-time high earlier this week, but it hasn’t quite stabilized.
On the back of this impressive performance, several Bitcoin proponents have continued talking the asset up.
Gold is No Match for BTC
Latest to join the ranks are Tyler and Cameron Winklevoss. The twins, famous for their history with Facebook, also run the Gemini Foundation. Speaking with CNBC earlier this week, they predicted that Bitcoin would soar to $500,000, ultimately surpassing gold as the global reserve asset.
The brothers pumped Bitcoin significantly in the interview, pointing to BTC surpassing its all-time high. Explaining the reason for the rally, Cameron pointed out that more investors have moved into crypto after realizing that BTC is the best hedge against inflation.
Cameron pointed out that this influx of investors provides an opportunity for an asymmetric return in the order of 25 to 40x. Currently, no other asset provides such returns. Tyler added:
“Our thesis is that bitcoin is gold 2.0, that it will disrupt gold, and if it does that, it has to have a market cap of 9 trillion, so we think it could price one day at $500,000 of Bitcoin. So at $18,000 bitcoin, it’s a hold or at least if you don’t have any, it’s a buy opportunity because we think there’s a 25x from here.”
Tyler also pointed out that Bitcoin could see more significant gains if used as a form of currency. While the asset is making slow progress in this regard, he didn’t rule out the possibility of this happening.
Gold Enthusiast Agrees that Bitcoin is Coming
The comparisons between Bitcoin and gold have been extensive in the past few weeks. Bitcoin proponents have pointed to the increase in investors as a possible reason why the asset could eventually surpass gold, while gold bugs still see Bitcoin as a bubble that would pop soon. But things are slowly changing.
Some gold enthusiasts are beginning to see the light. Last week, Dan Tapiero, the founder of Gold Bullion International, told Morgan Creek Digital co-founder Antony Pompliano that Bitcoin is indeed on the fast track to a $500,000 price peg.
Tepiero highlighted that gold could hit the $4,000 price in the next five years in his forecast. However, Bitcoin would probably be somewhere in the region of $300,000 and $500,000.
Thanks to the influx of institutional investors this year, Bitcoin’s market cap has been growing, and this should see even more institutions feeling comfortable with the leading cryptocurrency.
Tapiero also believes Bitcoin is more functional than gold. While gold only works as a store of value, the former is an entire network that supports functions as a medium of exchange and unit of account. With more players improving Bitcoin’s functionality to investors, Bitcoin could ultimately outperform gold.
While Tapiero counsels that investors maintain diversified portfolios, he acknowledged Bitcoin’s superiority.