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- The Winklevoss twins think that there is still a huge room for bitcoin’s price to improve.
- He has expressed that BTC can be worth $500k if not for certain challenges.
- In this post he has emphasized the fact that BTC can serve as a long term hedge investment against inflation.
Bitcoin has performed pretty well in the past couple of months. The much awaited BTC rally started in the last week of July. A few days ago, BTC skyrocketed to the $12000 before pulling back by some hundred dollars. Currently BTC is trading at $11,483.87 and is up by 0.08%. Despite some major growth this year, the Winklevoss twins think that there is still a huge room for bitcoin’s price to improve. They think that BTC is undervalued by almost 45 times its predicted value. In a recent blog post by Tyler Winklevoss, he has expressed that BTC can be worth $500k if not for certain challenges. In his post he has emphasized the fact that BTC can serve as a long term hedge investment against inflation.
The US Debt has Been Prevailing far Before the Covid 19 Pandemic
Winklevoss twins are Bitcoin pioneers and the co-founders of the Gemini Trust Company and the Winklevoss Capital management. Tyler claims that the US economy isn’t something new. As per him, the ‘credit crisis’ began back in 2008 much before we could have blamed the Covid-19 pandemic. He states the data of the US National Bureau of Economic Research according to which the US economy began in 2007 and ended in 2009. Moreover, the Covid-19 pandemic threatens the U.S. debt-to-GDP as it is anticipated that it will rise more than it did in the last 10 years. In such cases the government is left with three options : soft default, adopting austerity measures or hard default.
Bitcoin (BTC) is the Ultimate Hedge Against the Inflation
An imminent inflation is on the verge, however traditional hedges may not be that effective. Oil has a decreasing demand and increasing supply. On the other hand, gold the classical hedge may not be able to compete with BTC to become the ultimate superior hegde. This is because the supply of gold is still unknown whereas BTC has a finite supply (21 million). Secondly, Gold on normal instances cannot be transferred whereas BTC has a very high degree of portability.
Winklevoss further says that if the central bank reserves start converting their USD to BTC then the $500000 may be considered a threshold value. If the banks happen to diversify their foreign fiat holdings by even a mere 10% then it is highly probable that the BTC value may even reach the $600000 levels.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
