The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Here’s What Will Bring Bitcoin to Half a Million Dollars, According to Tyler and Cameron Winklevoss

by Daily Hodl Staff
August 29, 2020
in Bitcoin

Tyler and Cameron Winklevoss, the co-founders of crypto exchange Gemini, believe that Bitcoin is tremendously undervalued as long as it trades below $500,000.

In a lengthy blog post, the Winklevoss twins elaborately explain how the monetary policies of the US government and Federal Reserve have made the prospects of hyperinflation very likely. The Bitcoin entrepreneurs say US debt could swell to $29 trillion in 2021 from $22 trillion at the start of the year. The twins also point out that in an effort to monetize debt, the Fed has significantly grown its balance sheet from around $2 trillion in 2010 to over $7 trillion this year.

Source: Winklevoss Capital

With the emergence of Covid-19, the Winklevoss twins say the world is now facing a mountain of debt.

“From 2009 to 2019, the U.S. debt-to-GDP ratio swelled from 83% to 106% –post-COVID it’s on track to hit 135% by September of this year. To bottom-line this, the U.S. debt-to-GDP ratio will grow more this year than it did over the entire prior decade. China’s debt-to-GDP ratio was 300% entering COVID and has grown to 318% as of Q1 2020. The rest of the world is not faring any better.”

While there are several options to deal with the massive debt, the BTC magnates note that the government will likely pursue a strategy that will reduce the value of the US dollar through inflation.

“When a central bank elects to pursue a soft default strategy, it targets a particular inflation rate and proceeds to print enough money to hit it. Once reached, this target inflation rate reduces a government’s debt obligations by the same rate.”

As inflation rears its ugly head, the Winklevoss twins predict that investors will seek refuge in store-of-value (SOV) assets.

Although gold is the tried and tested hedge against inflation, the early BTC investors point out that the precious metal is inferior compared to Bitcoin in many aspects, including supply and portability. Gold’s supply may be scare on Earth but it is abundant in outer space. Also, gold can be very difficult to move in times of crisis.

Meanwhile, BTC’s supply is forever fixed at 21 milllion. The king crypto can also easily be transferred anywhere around the globe 24/7.

Source: Winklevoss Capital

Because of BTC’s advantages, the twins believe that the top cryptocurrency will cannibalize gold’s market cap of $9 trillion.

“If we are right about using a gold framework to value Bitcoin, and Bitcoin continues on this path, then the bull case scenario for Bitcoin is that it is undervalued by a multiple of 45. Said differently, the price of Bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per Bitcoin.”

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • BlockJoy Secures Nearly $11 Million From Gradient Ventures, Draper Dragon, Active Capital and More To Launch Decentralized Blockchain Operations
    February 2, 2023
  • Peer Acquires Elite Team of Engineers Behind Zenly’s Popular 3D Maps
    February 1, 2023
  • Sign Up Today for the TRON Grand Hackathon aka HackaTRON Season Four
    February 1, 2023
  • MegaWorld Land Gameplay on BNB Chain Starts February 15, 2023
    February 1, 2023
  • Web 3.0 Hackathon on Astar Sponsored by Toyota Motor Corporation
    February 1, 2023
  • Match-Trader White Label by B2Broker Gives Brokers a Comprehensive Online Trading Platform With B2Core Integration
    February 1, 2023
  • Addressable Raises $7.5 Million To Enable Web 3.0 Companies To Acquire Users at Scale
    January 31, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$23,011.17
$23,011.17
1.46%
Ethereum
$1,634.06
$1,634.06
2.09%
Cardano
$0.396751
$0.396751
0.48%
XRP
$0.401311
$0.401311
2.4%
Dogecoin
$0.092494
$0.092494
2.85%

Spotlight

  • ‘New Era’ As Cardano (ADA) Based Stablecoin Djed Goes Live on Mainnet
    January 31, 2023
  • Bitcoin Could Scale Into Staggering $30,340,000,000,000 Market, According to ARK Invest’s New Crypto Forecast
    February 3, 2023
  • Top Analyst Says One Ethereum-Based Altcoin Is Ready To Break Out, Updates Outlook on Three Additional Altcoins
    January 30, 2023
  • Low-Cap Crypto Asset Surges 219% After Contentious SEC Decision – Could XRP Do the Same?
    February 1, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl