Speaking during the Singapore Fintech Festival 2020 on Dec. 7, pioneering Bitcoin (BTC) investors Cameron and Tyler Winklevoss reaffirmed previous forecasts that Bitcoin’s price will eventually exceed prices of $500,000 per Bitcoin.
The twins noted that their $500,000 prediction is predicated on the assumption that Bitcoin’s market cap will increase by 40 times to surpass gold’s roughly $9 trillion market cap in the future.
Cameron pointed to the “tremendous amount of money-printing going on” in debt and fiat regimes, and concerns surrounding inflation as driving up demand for “hard assets” like gold and Bitcoin.
Cameron states that Bitcoin offers significant advantages over gold as a monetary commodity, such as its ease of transfer and immunity to external forces influencing the rate of its production.
Despite their bullish outlook, the twins noted that the crypto sector has seen starkly uneven geographical advancement, with a lack of regulatory clarity hindering the growth of business and services around the technology in many emerging economies.
However, they noted the technology’s promise of banking the world’s unbanked, noting a plan to expand their exchange Gemini into emerging regions.
The pair advocated that lawmakers utilize regulatory sandboxes to reduce the barriers faced by startups working with crypto, warning that heavy-handed regulatory requirements could stifle innovation. Cameron stated:
“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.”
Tyler also dismissed the crypto community’s “provocative rhetoric” regarding Bitcoin’s potential to render the legacy sector obsolete, asserting that the crypto industry’s growth is contingent 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.”
Despite Bitcoin’s tremendous year, Cameron predicts the sector “is still just beginning.” Tyler urged people to educate themselves regarding Bitcoin, 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.”