Gemini CEO reveals what needs to happen for BTC to hit $500k

 

With Bitcoin price more than halfway towards its ATH, many in the crypto industry have speculated what might happen in weeks and months to come, and where the price may end up. Ever since 2017, experts have been predicting various levels that BTC price could reach in the future.

While some seem rather realistic, there are also those that predicted that BTC will hit $1 million per coin. Gemini co-founder, Tyler Winklevoss, however, believes that BTC has a strong chance of reaching half of that, but only under a certain condition.

BTC must overtake gold to hit the price of half a million

In his recent article, Winklevoss predicted that it is possible for the first and largest cryptocurrency to hit $500,000 in the future. However, this can only happen after BTC overtakes gold as the world’s largest safe-haven asset.

Bitcoin’s current market cap is at around $200 billion. Meanwhile, gold holds $9 trillion in its own market cap. As such, it is still one of the largest stores of value out there. Even so, Bitcoin could replace it — as well as oil and the USD itself — and in doing so, it would have a clear road to a $500k price.

Safe-haven assets have a weakness that BTC has overcome

Winklevoss’s prediction that BTC could overcome safe-haven assets like gold and oil comes due to these assets’ weaknesses. While they are scarce, they are also very difficult to store and transport. However, even their scarcity is brought into question, as the actual supply of gold — including the undiscovered reserves under the earth’s crust — is still unknown.

Meanwhile, there are also countless asteroids that hold precious metals, with over 600,000 of them discovered so far. Mining any one of them in the future would significantly reduce the price of gold.

Meanwhile, Bitcoin’s total supply is 21 million coins, and it will never be larger than that. With numerous projects dedicated to mining asteroids around the planet, the eventual drop of gold’s value is almost a certainty. Bitcoin’s own value, on the other hand, can only increase in time.