Bitcoin has seen an extremely strong rise in the last few months, from the $ 10,000 region to $ 29,000. Since the beginning of the year, the cryptocurrency has gone higher.
Although many investors are already investing in BTC, there are still upward expectations on a macro scale. This increase comes despite growing concerns about a short term correction as the market may have overheated after 100% gains in just one month.
Bitcoin can reach $ 500,000
Gemini’s Tyler Winklevoss recently commented on the long-term prospects for Bitcoin’s price action. He doubled the price in an estimate he and his twin brother made. In numbers, the expectation is now $ 500,000 for Bitcoin.
Tyler Winklevoss uses the following statements on the subject:
“Bitcoin has already formed an important ground for gold. In less than a decade from the launch of the promotional newsletter, it has grown in market value to over $ 200 billion. Today, the market value of gold is cautiously $ 9 trillion. If we are right to use a golden framework to value BTC, and BTC continues on that path, then the bullish case scenario for Bitcoin is 45 times lower in value. In other words, the price of BTC can be appreciated 45 times more than where it is. This means that we can see a price of $ 500,000 per BTC. “
Tyler Winklevoss also stressed that the flow of capital from traditional investments to Bitcoin over time has enormous value, which could result in a movement of over $ 500,000.
Better than gold
Many agree to the Winklevoss brothers that Bitcoin is superior to gold as an investment in the current macroeconomic environment.
Rick Rieder, the world’s largest asset manager CIO, said in an interview that he thinks Bitcoin has some lasting power and will outperform gold. He said this could be largely due to millennial and younger investors who prefer their BTC investment to a similar gold investment.