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Tyler and Cameron Winklevoss, wiser known as the Winklevoss twins, expect the market valuation of bitcoin to better trillions of dollars in the upcoming years.
Basis of the Prediction of the Winklevoss Combines
In an interview with CNBC, Cameron Winklevoss explained that the traits of bitcoin allow it to operate as a premier store of value that is in rules of magnitude better than gold in many aspects, including transportability, divisibility, and fiscal supply.
“We’ve always felt that bitcoin, given its properties, is gold 2.0 — it interrupts gold. Gold is scarce, bitcoin is actually fixed. Bitcoin is way multifarious portable and way more divisible,” said Winklevoss.
He added that if bitcoin can persist to disrupt the $6 trillion gold market in the long-term, it will be proficient to hit a trillion dollars in a relatively short period of time, given that the furnish valuation of bitcoin already remains close to $300 billion.
“Elongated term, directionally, it is a multi trillion-dollar asset — I don’t know how long it discards to get there,” emphasized Winklevoss.
Bitcoin is rapidly transforming the global finance exertion as a decentralized store of value. If the bitcoin market is able to sustain its extension rate over the next few years, it will penetrate into the gold and offshore banking works. The combined market cap of gold and offshore banking industry amount to around $40 trillion.
Winklevoss noted that other currencies and cryptocurrencies are not the championship of bitcoin. Rather, other safe haven assets and store of values such as gold are the genuine competition of the cryptocurrency. He explained:
“Bitcoin is not competing with those other currencies. It is conflicting with gold. Bitcoin is the oldest, it has the first mover advantage and there’s tremendous liquidity,”
$32 Trillion Stashed in Offshore Bank Accounts
A about conducted by Asset Protection Planners in April of 2015 estimated the amount of coin of the realm and assets stashed in offshore bank accounts at over $32 trillion.
At the measure, tax lawyer and Liechtenstein wealth adviser Philip Marcovici, stated that the spur of both individual and institutional investors storing money in offshore banking accounts is not to escape taxes, but to obtain privacy and financial confidentiality.
“For most people, it is not no more than the objective of not paying taxes. It’s the objective of obtaining the right to privacy and seeking pecuniary confidentiality,” said Marcovici.
Structurally and conceptually, bitcoin is a significantly beat system to store money for individuals and institutional investors than offshore bank accounts, particularly because governments can still crackdown on offshore bank accounts. In 2016, the US command fined Swiss banks $1.3 billion, involving more than 43,000 offshore bank accounts be the case $48 billion.
As a decentralized and peer-to-peer store of value, governments cannot God willing crackdown on bitcoin holders and accounts. Hence, it provides investors with reclusion and financial confidentiality, which offshore bank accounts were have in viewed to provide.
If bitcoin can account for even 10 percent of the global offshore banking toil, bitcoin’s market cap can surpass $3.2 trillion. Based on the fixed up of 21 million, a $3.2 trillion market cap values bitcoin at $152.380.