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‘Cash is trash…and [high-profile investors] realize it…At some point, it is hard to look at those data points and say that bitcoin isn’t an incredible store of value.’

— Tyler Winklevoss

The Winklevoss twins see bitcoin’s market value one day hitting $9 trillion

 

“Our thesis is that Bitcoin is gold 2.0 and it will disrupt gold. If it does that it has to have a market cap of $9 trillion. So we think bitcoin could price one day at $500,000 a bitcoin. So at $18,000 bitcoin it’s a hold or if you don’t have any its a buy opportunity because we think there’s a 25x from here,” Tyler expounded.

“We think bitcoin’s here to stay,” said Tyler, who explained that his prediction for much higher prices for bitcoin are based on a number of factors but not least of all the recognition by high-profile investors, including Paul Tudor Jones and Stanley Druckenmiller, who have recently “extolled the virtues” of the nascent asset, which was created in 2009.

Ark Investment CEO Cathie Wood appeared at the virtual investing in tech seminar put on by Barron’s where she discussed the rise of Bitcoin.

What Happened: Wood told viewers the 160% year-to-date increase for the price of Bitcoin could be just the beginning.

Wood said the decision by the Fed to keep interest rates low, Bitcoin being a digital alternative to gold and an insurance policy against inflation as reasons why Bitcoin has increased in price.

The increase in institutional investors getting involved in Bitcoin is where Wood sees the price increasing further.

Wood said it reminds her of the early days of institutions beginning to make small allocations to real estate and emerging markets. She said the allocations started at 0.5% and then rose to 5%.

If institutions allocated mid-single-digit amounts to Bitcoin, it would take the price to a range of $400,000 to $500,000.

There will only be a supply of 21 million Bitcoin, with 18.5 million currently in existence.