Bitcoin Hit $500K? Speculators Explain the Reasons

Bitcoin will reach $500,000

The Winklevoss twins wrote a blog post Thursday making the case for Bitcoin to reach $500,000. A bizarre speculation that caused eyebrows to raise, given the dire world economic situation after the COVID-19 pandemic.

The US Fed Chair Jerome Powell announced a significant policy change leading to more tolerance for inflation. The move has helped Bitcoin to thrive.

Optimism About Cryptocurrency

According to Forbes, some investors are optimistic about the future of cryptocurrencies.

The top 10 crypto wallet apps like Coinbase and Binance saw a record number of downloads in July.

We’re in the early stages of another bull market.

Tech investor Cory Klippsten

Bitcoin as Safe Haven

The Winklevoss brothers explained why in the long run Bitcoin is the only good safe haven.

We believe there are fundamental problems with gold, oil, and the US dollar as stores of value going forward. Bitcoin is ultimately the only long-term protection against inflation.

Winklevoss brothers

In a comparison with gold, they said that while Gold is the classic inflation hedge, there are compelling reasons why Bitcoin is poised to take its mantle.

Bitcoin is not just a scarce commodity, it’s the only known commodity that has a deterministic and fixed supply.

As a result, Bitcoin is not subject to any of the potential positive supply shocks that gold may face in the future.

“Nonetheless, we believe that Bitcoin will continue to cannibalize gold and that this story will play out dramatically over the next decade. The rate of technological adoption is growing exponentially. Software is eating the world and gold is on the menu”, added the Winklevoss brothers.

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Mohamed Tharwat 20 Articles
Cairo-based journalist, specialized in economics and finance markets