The Winklevoss Brothers Named the Reasons BTC Increase to $500,000
Kataryna Habeliia August 28, 2020
Table of Contents [hide]
- 1 The first crypto billionaires and founders of the Gemini exchange believe that gold, dollar, and oil are losing ground.
- 1.1 Deficiencies in core assets
- 1.2 Why might the dollar fall?
The first crypto billionaires and founders of the Gemini exchange believe that gold, dollar, and oil are losing ground.
Defensive assets have a number of problems, against the background of which the value of the cryptocurrency should skyrocket
The bitcoin rate will rise to $ 500 thousand, the first crypto billionaires and founders of the Gemini exchange, the Winklevoss brothers, said in their blog. They associate their forecast with the transition of the status of a reliable store of value from gold, oil, and the dollar to cryptocurrency. When this happens, the value of BTC will rise exponentially.
Deficiencies in core assets
The Winklevoss listed several flaws in core defensive assets that make them lose out to digital. The brothers called uncontrolled emissions the problem of the dollar. The US Federal Reserve’s policy to print the currency leads to its depreciation. To illustrate the argument, billionaires published a graph showing how the money supply in the United States has grown over the past 50 years.
The Winklevoss brothers called the problem of oil dependence on demand. The demand for black gold may plummet, as the COVID-19 coronavirus infection has proved. The aggravating factor here is that fuel needs to be stored and transported, and this is an additional cost.
The brothers also noted several disadvantages of gold. It is extremely difficult to transport it due to its weight and security requirements, and the offer, albeit limited, is not fixed. In both cases, BTC solves these problems. The most important thing is potential. The capitalization of the precious metal has already exceeded $ 9 trillion, while the similar figure for bitcoin has reached only $ 200 billion. If capital flows from one market to another, this will make it possible for the price of the cryptocurrency to rise by 4500%.
Why might the dollar fall?
On August 20, analysts polled by Bloomberg warned that the dollar would soon fall due to the monetary policy of the Federal Reserve System (FRS). Economists pointed to the similarity of the current situation with 1985 and 2002 when there was a decrease in the flow of foreign investment and a weakening of the American currency. The reason for such forecasts was the reduction of the FRS base rate to 0–0.25 percent.
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