Tyler Winklevoss believes Bitcoin price is headed to $500,000 in the long term if the digital asset continues on the current path.
American cryptocurrency and Bitcoin investor, Tyler Howard Winklevoss, also the founder of Winklevoss Capital Management and Gemini cryptocurrency exchange, outlined his thoughts on Bitcoin future market price. According to his analysis that is based on a gold framework to value Bitcoin, Tyler believes BTC market price is poised to trade at $500k if the market conditions prevail. Tyler stated:
“If we are right about using a gold framework to value Bitcoin, and Bitcoin continues on this path, then the bull case scenario for Bitcoin is that it is undervalued by a multiple of 45. Said differently, the price of Bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per Bitcoin”.
Model of Tyler Winklevoss Future Bitcoin Price
According to his theory, all indicators point to Bitcoin overtaking gold as the global safe haven in the future. Furthermore, since the market capitalization of gold is estimated to be $9 trillion while that of Bitcoin is valued at around $200 billion at the time of publication, once the market capitalization of BTC hits that of the current market cap of gold, it could leave a 45-fold upside of BTC market price.
In Tyler Winklevoss’s analogy, the gold supply is currently capped by the ability of humans to mine it from the earth. However, he continued that there is no limit of gold supply in the galaxy where humanity is fast progressing in exploring. He explained:
“Currently, gold is a reliable store of value and the classic inflation hedge. Supply. The supply of gold is actually unknown. While gold remains scarce or ‘precious’ on planet Earth, the same cannot be said with respect to our galaxy”.
Another factor that Tyler thinks portrays a huge call for Bitcoin price breakout is the imminent global currency inflation. Due to the unlimited supply of the dollar, which the Fed has increased its rate of printing in the past few months to cushion the market from COVID-19 crisis, Bitcoin future price, which is greatly bolstered by its fixed supply, will continue to skyrocket. Tyler underlined:
“Inflation is coming. Money stored in a bank will get run over. Money invested in assets like real estate or the stock market will keep pace. Money stored in gold or bitcoin will outrun the scourge. And money stored in bitcoin will run the fastest, overtaking gold”.
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