Bitcoin price: Cryptocurrency expert explains why BTC is similar to gold
BITCOIN price could reflect that of the gold commodity market because of their similarities, according to co-founder of the Gemini Exchange Cameron Winklevoss.
Bitcoin had a market evaluation of $135 billion on Wednesday, according to CoinDesk data, after its price recovered from the plunge of the last few weeks.
Cameron Winklevoss, CEO of Gemini Exchange, claimed the cryptocurrency will be worth 40 times its current value.
Speaking on CNBC, Mr Winklevoss said: “Taking bitcoin in isolation, putting all the other assets aside, we believe bitcoin disrupts gold.
“We think it's a better gold if you look at the properties of money. And what makes gold gold? Scarcity.
“Bitcoin is actually fixed in supply so it's better than scarce and gold. It's more portable, it’s fungible, it's more durable.
“It sort of equals a better gold across the board.
“So if you look at a $100billion market cap today, now last week it might have been more like 200, so it's actually a buying opportunity, we think that there's a potential appreciation of 30 to 40 times because you look at the gold market today, it's a $7trillion market.
“And so a lot of people are starting to see that, they recognise the store of value properties.
“So we think regardless of the price moves in the last few weeks, it's still a very under appreciated asset.”
According to Mr Winklevoss’ calculation, bitcoin could reach the value of $5trillion in 10 to 20 years time, taking its current market capitalisation of $135billion.
But even at the lower $100billion market cap, a 40 times price appreciation would skyrocket the cryptocurrency’s value to $4trillion.
According to CoinDesk at 9:55 pm on February 7, bitcoin price is $8,114.39. At the same time, its competitors ethereum and Ripple are respectively priced $817.04 and $0.76.