Tyler Winklevoss, one of the first Bitcoin (BTC) billionaires and co-founder of Gemini, believes that Bitcoin’s extreme bull condition means reaching the $ 500,000 target.

The long-term $ 500,000 Bitcoin price theory is straightforward. Winklevoss believes that Bitcoin could overtake gold as the leading safe-haven asset in the global market.

With the market value of gold estimated at $ 9 trillion while the value of Bitcoin is estimated at around $ 200 billion, that could leave 45x.

Does Bitcoin Have What It Takes To Outrun Gold?
Investors have relied on three stores of value for many decades: gold, oil and the US dollar. But all three have distinct weaknesses.

Gold and oil are difficult to transport and store. But most importantly, they both do not have a fixed width.

As such, if a large exposure is discovered for both assets, though small, it could negatively affect their value.

Winklevoss explained:

Currently, gold is a reliable store of value and a classic inflation hedge. Donates. The supply of gold is actually unknown. While gold remains scarce or “precious” on planet Earth, the same cannot be said about our galaxy. ”

The biggest problem for the US dollar is inflation and the stability of its value. As we have seen in its performance over the past four months, fears of inflation and economic uncertainty could destabilize the dollar for long periods.

In the event of long-term inflation, Winklevoss indicated that gold or Bitcoin could outpace the capital stored in banks. he added:

Inflation is coming. The money stored in the bank will be run over. Money invested in assets like real estate or the stock market will keep pace. Money stored in gold or bitcoin will overcome the scourge. The money stored in Bitcoin will beat gold as quickly as possible. ”

With Bitcoin, inflation is not possible due to a steady supply of 21 million. Unlike gold and oil, it will always be scarce and easy to transport and store. Given these Bitcoin characteristics, Winklevoss said he believes Bitcoin is “the only long-term protection against inflation.”

Undervalued by multiples of 45
In recent months, especially after the outbreak of the pandemic in March, demand for products and digital currencies has increased. Concerns about inflation may rise after Fed Chairman Jerome Powell confirmed that the central bank is looking to exceed its average inflation target. In fact, Tyler Winklevoss believes that the Federal Reserve is the “biggest booster” of Bitcoin’s value.

For example, MicroStrategy, a US-based public company, bought Bitcoin for $ 250 million to use as the company’s primary treasury asset.

Rapid adoption, increased institutionalization, improved infrastructure, and increased liquidity could bolster the final bullish state of Bitcoin’s valuation.

Winklevoss stated:

“If we are right to use a gold framework to value Bitcoin, and Bitcoin continues down this path, then the bullish case scenario for Bitcoin is that it is undervalued by multiples of 45. In a different way, Bitcoin’s price could rise 45 times from where it is today, which It means we can see a price of $ 500,000 per bitcoin. “

Source: CoinTelegraph

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