Tyler and Cameron Winklevoss, better known as the Winklevoss brothers, expect Bitcoin market valuation to exceed trillions of dollars in the coming years.
Principles of Predicting the Winklevoss Twins
In an interview with CNBC, Cameron Winklevoss explained that bitcoin’s properties allow it to function as a store of value of magnitude better than gold in many respects, including portability, divisibility, and money supply.
Every time we looked at Bitcoin specifications, we felt that it was gold 2.0. Gold is scarce, bitcoin has really improved. The Bitcoin path is a more portable and divisible path.
He considers that the market valuation of bitcoin is already approaching $300 billion if bitcoin can continue to disrupt the 6 trillion gold market in the long run. He added that it could hit a trillion dollars in a relatively short time.. .
Winklevoss emphasized “Long-term, directionally, it is a multi-trillion dollar asset – I don’t know how long it will take to get there”.
Bitcoin is rapidly transforming the global financial industry as a decentralized store of value. The ability of the Bitcoin market to sustain its growth rate over the next few years will permeate the gold and offshore banking sectors. The combined market share of gold and the offshore banking industry reaches nearly $40 trillion.
Other currencies and cryptocurrencies have no competition from bitcoin, Winklevoss said. On the contrary, other security haven assets and storage of values like gold are the real competition of cryptocurrency. He explained:
“Bitcoin does not compete with other currencies. It competes with gold. Bitcoin is the oldest in the industry, it has the advantage of being the first and it has tremendous liquidity “
US$32 trillion Stored in Offshore Bank Accounts
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A study by Asset Protection Planners in April 2015 estimates that the amount of cash and assets held in offshore bank accounts exceeds $32 trillion.
At the time, tax lawyer and Liechtenstein wealth adviser Philip Marcovici, both offshore banking They noted that individual and institutional investors who store money in their accounts do not seek tax avoidance, but achieve privacy and financial privacy.
“For most people, it’s not just the purpose of not paying taxes. Marcovici aims to achieve the right to privacy and seek financial secrecy,” said Bitcoin. system, mainly because governments are shrinking offshore bank accounts. In 2016, the U.S. government was fined $1.3 billion in taxes, including more than 43,000 off-shore bank accounts holding $48 billion. they can’t make possible pressures. Thus, providing offshore bank accounts provides privacy and financial privacy to the intended investors.
If bitcoin can make up 10 percent of the global offshore banking industry, bitcoin’s market share could exceed $3.2 trillion. Based on 21 million Bitcoins, assuming the BTC price is $152,380, it reaches a market value of US$3.2 trillion.
The Winklevoss brothers are also known as the first Bitcoin billionaires.
CCN