Gemini crypto exchange co-founders and Bitcoin bulls Tyler and Cameron Winklevoss are providing further insight as to why Bitcoin will ascend above $500,000.
In the latest episode of his podcast, What Bitcoin Did, Peter McCormack speaks with the Winklevoss twins about their recently published article, “The Case for $500K Bitcoin.”
The Gemini co-founders began writing their thesis on the future price of BTC, sharing that their bet on a roughly 50x price increase for the king coin was originally unrelated to the macroeconomic backdrop provided by Covid-19.
“Interestingly enough it wasn’t actually a pandemic-related piece. It was really a piece on the debt reckoning that we think is coming over the next 5-10 years and why we thought Bitcoin made a lot of sense for people who want to hedge against inflation.”
The twins also say that the government’s response to the Covid-19 pandemic highlighted the value of Bitcoin, which drove them to publish the article.
“[The blog] was almost done when the pandemic and the lockdowns and the economies, the economic shock happened and we were like okay, ‘This is going to change a bit.’
And so we waited that out for a couple of months. [We] waited to see the government responses like the CARES Act in the US – a lot of the stimulus – and then we just realized that this piece is even more relevant. The outlook has gotten even more scary for fiat regimes. Like, ‘Oh my gosh, Bitcoin’s your only saving grace.’ And so we put those thoughts together and finally published it.”
The Winklevoss brothers point out that the pandemic has accelerated their Bitcoin investment thesis.
“The pandemic in some ways has pushed us into the future… We’ve seen the decline of brick and mortar retail has been accelerated by this. The onslaught of e-commerce and big tech has already been accelerated as well… It’s been record quarters on Wall Street for much of big tech, yet the rest of the economy is suffering…”
As the macroeconomy becomes increasingly Bitcoin-friendly, says the pair, the duo acknowledges that the major roadblock sitting on the path toward a $500,000 Bitcoin is time.
“The question in our mind is not so much does it get to $500,000 but how quickly and I think that’s unclear. And part of what will drive it there, there’s always these catalysts – some you can predict and some you can’t – but one of the catalysts is potentially hyperinflation due to all of the debt around the world… The pandemic has sort of accelerated us a couple years forward if you look around at what’s happening with big tech and retail.
I think it’s also pushed us closer to that debt reckoning – that point where people start to look at the US deficit and say ‘This is incredible. It no longer passes a reasonable test of whether or not the US can pay it.’ At that point, the US debt bag holders are going to stop lending and that’s when it gets really ugly.”
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