Cameron Winklevoss, one of the twins who reportedly became the first billionaire bitcoin investors, is predicting that the widely popular and ever-volatile cryptocurrency will move even higher.
In an interview with CNBC late last week, Winklevoss said that bitcoin disrupts gold. “Gold is scarce, bitcoin is actually fixed,” he said. “Bitcoin is way more portable and way more divisible. At a $300 billion market cap, it’s certainly seen a lot of price appreciation, but gold is at $6 trillion, and if bitcoin disrupting gold is true and it plays out … then you can see 10 to 20 times appreciation, because there is a significant delta still,” Winklevoss said. “Long term, directionally, it is a multi-trillion-dollar asset – I don’t know how long it takes to get there.”
At the same time that Winklevoss is pounding the table on the future prospects of bitcoin, many financial heads think it’s a bubble. JPMorgan’s chief executive, Jamie Dimon, famously called bitcoin a “fraud,” while others have railed against the cryptocurrency. Still Winklevoss disagrees, telling CNBC that it’s not the right way to look at cryptocurrency.
“Social networks grow in value exponentially based on the number of users and participants. The difference between one and 100 is dramatic – 100 and a million is that much more dramatic and exciting. As more people join, it gains more value,” Winklevoss said in the interview.
Winklevoss wouldn’t say how much bitcoin he has, but said he is “directionally long” on bitcoin and is an investor in other cryptocurrencies, including Ether and Filecoin. What’s more, the investor said he isn’t concerned that other cryptocurrencies could impact the gains bitcoin has enjoyed.
“Bitcoin is not competing with those other currencies. It is competing with gold. Bitcoin is the oldest, it has the first mover advantage and there’s tremendous liquidity,” he said, adding that the problem Ether is trying to solve is different than bitcoin’s payment application. “I think it’s great if there are a number of cryptos.”