Bold BTC prediction: Can the bitcoin price really reach $500,000 this year?
Bitcoin has experienced an extremely strong rally in recent months, taking it from the $10,000 region to $29,000. Since the beginning of the year, the cryptocurrency has risen even further.
While many investors are already up with their investment in BTC, there are still expectations of a macro-level bounce. This is despite growing concerns about a short-term correction as the Bitcoin Pro market could be overheated after rising 100% in just one month.
Can bitcoin reach $500,000?
Tyler Winklevoss recently commented on his long-term expectations for Bitcoin’s price performance. He has now reiterated a bold prediction he and his twin brother made – that BTC could reach $500,000 in the coming years.
Why do the two billionaires believe this?
In the oft-quoted report, the pair explain that Bitcoin is likely to be a better investment than gold over time. In fact, they believe BTC will surpass gold’s market capitalisation over time as capital flows from one market to this new market:
„Bitcoin has already made up significant ground on gold – from white paper to over $200 billion in market cap in less than a decade. Today, the market cap of above-ground gold is conservatively $9 trillion. If we are correct in using a gold framework to value BTC, and BTC continues on this path, then the bull scenario for Bitcoin is that it is undervalued by a multiple of 45. In other words, the price of BTC could rise 45x from where it is today, which means we could see a price of $500,000 per BTC.“
As part of a capital flight from traditional investments into bitcoin, a move above $500,000 could be caused over time, he said:
„If central banks start to diversify their foreign fiat holdings even partially into bitcoin, say 10%, then the 45x value will correct upwards towards $55x or $600,000 per bitcoin, and so on.“
2020 has been a year like no other. I’ll leave you with my final thought of the year – #Bitcoin will break 500k within this decade. Below are my thoughts.
Better than gold?
Many agree with the Winklevoss twins that Bitcoin is better than gold as an investment in the current macroeconomic environment.
Rick Rieder, CIO at the world’s largest asset manager, believes Bitcoin has staying power and will outperform gold. According to Rieder, this could largely be due to the number of millennials and younger investors who prefer a BTC investment over a similar investment in gold.
Other prominent asset managers have also addressed this, arguing that BTC is one of the best investment opportunities today.