In recent times, there is no shortage of Bitcoin proponents as the world’s number cryptocurrency is in the limelight once again as it eyes fresh highs above $20,000. However, one of the earliest, when it comes to advocating the flagship cryptocurrency, is the Winklevoss twins, who have once again praised bitcoin, predicting that its market cap will flip Gold’s.
Speaking at the Singapore Fintech Festival held on December 7, Cameron and Tyler Winklevoss reaffirmed previous predictions that bitcoin’s price will eventually surpass $500,000. They noted that this prediction was based on the assumption that Bitcoin’s market cap will increase by 40 times to surpass gold’s approximately $9 trillion market cap in the future.
Cameron also highlighted the “tremendous amount of money printing going on” in the present pandemic scenario, and the rising concerns regarding the looming threat of inflation, as some of the factors fuelling demand for “hard assets” like gold and Bitcoin.
He went on to add that bitcoin has multiple advantages over gold when comparing it as a monetary commodity, like seamless transfers and immunity to external factors that affect the rate of its production.
The twins also expressed concerns regarding the uneven geographical advancement the industry underwent, due to lack of regulatory clarity that has ended up hindering the growth of the crypto-related business and services in several emerging economies.
However, they stressed over the technology’s ideals of banking the unbanked and also teased plans to expand their crypto trading platform to new regions.
Regulators and investors must take a look at bitcoin
The twins also urged regulators to leverage regulatory sandboxes to reduce the barriers faced by start-ups in this market, warning that heavy-handed regulatory requirements could hamper innovation. Cameron said:
“Apple started in a garage in Silicon Valley, I think Facebook started in a dorm room […] you have to be careful that overhead is not so large that a lot of people can’t innovate in this space.”
On the other hand, Tyler dismissed the community’s “provocative rhetoric” that bitcoin will render the legacy banking system obsolete, asserting that the crypto industry’s growth is partially dependent on collaboration with banks:
“If people want to buy Bitcoin, their value right is usually not in crypto because crypto is new. So you have to build a bridge between bands and this new world of crypto and you need banks to do that.”
Even though bitcoin has had a great end to 2020, Cameron predicts that this “is still just beginning.”He went on to urge investors to educated themselves about bitcoin before coming to conclusions, stating:
“Pay attention to Bitcoin and crypto and educate yourself, because this is the greatest money and technological revolution since the Internet itself. It’s not a fad, it’s here to stay — and it will transform money, the Internet and so much of the world around you. And it’s just starting.”