Bitcoin investor Cameron Winklevoss — one half of the matches reported to have just become the world’s first bitcoin billionaires — claims the skyrocketing cryptocurrency is primed to head higher.
Winklevoss and his brother Tyler superlatively settled with Facebook founder Mark Zuckerberg in 2008 past the claim that he stole the idea for the social network. But it’s what the kins have done in the cryptocurrency realm that has been making headlines of up-to-date — and they don’t think it’s run its course.
“We’ve always felt that bitcoin, reality its properties, is gold 2.0 — it disrupts gold. Gold is scarce, bitcoin is really fixed. Bitcoin is way more portable and way more divisible. At a $300 billion deal in cap, it’s certainly seen a lot of price appreciation, but gold is at $6 trillion and if bitcoin disrupting gold is right and it plays out … then you can see 10 to 20 times appreciation because there is a pregnant delta still,” Cameron Winklevoss told CNBC on Friday.
“Big term, directionally, it is a multitrillion-dollar asset — I don’t know how long it takes to get there,” he totaled.
While the bitcoin investor predicted success ahead, many economic luminaries have told CNBC they believe the cryptocurrency is a bubble of authentic proportions. But Winklevoss, for his part, disputed that characterization.
“We’ve seen the fizz term thrown around and it’s just not the right way to look at this,” he demanded. “Social networks grow in value exponentially based on the number of owners and participants. The difference between one and 100 is dramatic — 100 and a million is that much uncountable dramatic and exciting. As more people join it gains more value.”
And steady though some of those people getting involved with the policy may not understand the advanced technology behind it, Winklevoss said he’s not worried, palliating that “most people don’t know how the internet works but they are agreeable using it.”
The investor declined to say just how many bitcoin he has, but said he’s “directionally elongated” on the most popular cryptocurrency and also invested in rivals ether and filecoin.
While some analysts would rather cautioned that the sheer number of different crypto assets could cut the gains of the ecosystem, Winklevoss told CNBC he didn’t share those matters.
“Bitcoin is not competing with those other currencies. It is competing with gold. Bitcoin is the oldest, it has the triumph mover advantage and there’s tremendous liquidity,” he said, adding that the trouble ether is trying to solve is different than bitcoin’s payment effort. “I think it’s great if there are a number of cryptos.”
Looking ahead, the next critical catalyst for bitcoin will be the CBOE bitcoin futures contract, which exigency execrates the Gemini cryptocurrency exchange co-founded by the Winklevoss twins.
“We are the price appliance for the contracts when they settle,” Winklevoss said.
Some finishes say the CBOE and CME futures launch over the coming two weeks will take pave the way for bitcoin ETFs. In March, the U.S. Securities and Exchange Commission disallowed the Winklevoss ETF, which the twins have been working to get on the market.
“We dream derivatives set the stage for other products and is the next logical evolution of this deal in,” Winklevoss said.
The SEC is said to be reviewing bitcoin ETFs, but a decision is not expected this year.
In general, regulators have been paying multitudinous attention to the cryptocurrency market, and Winklevoss said more oversight is really a good thing.
“When Silk Road got busted, the price of bitcoin increased considerably and transaction volume did not decrease. In fact the number of transactions on blockchain at worst increased from that point forward. So this idea that bitcoin is powered by impenetrable market or money launderers is simply false.”