Bitcoin followers Cameron Winklevoss and Tyler Winklevoss expect the largest cryptocurrency by market cap to hit the $500,000 mark if society continues using a gold framework to value bitcoin.
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In a recent report called "The Case for $500K Bitcoin," the Winklevoss twins highlight the cryptocurrency is superior to traditional commodities like gold and oil, as the digital asset has portability, divisibility, and durability property.
"Nonetheless, we believe that bitcoin will continue to cannibalize gold and that this story will play out dramatically over the next decade," the twins wrote in the report.
While the market capitalization of BTC is approximately $360 billion, bitcoin still remains undervalued as a digital precious asset by a multiple of 45.
The price of bitcoin, according to Cameron and Tyler Winklevoss, can appreciate 45x from where it is today, which means we could see a price of $500,000 per 1 BTC.
The Gemini cryptocurrency exchange founders point out the forecast does not factor in the possibility of bitcoin "displacing some portion of the $11.7 trillion dollars of fiat foreign exchange reserves held by governments."
"If central banks start to diversify their foreign fiat holdings even partially into bitcoin, say 10%, then 45x gets revised upward towards 55x or $600,000 USD per bitcoin, and so forth," the Winklevoss twins say.
In the meantime, the US-based cryptocurrency exchange Gemini continues its expansion all over the world with a new approval from the UK's Financial Conduct Authority (FCA).
Hence, Gemini became the first US-based cryptocurrency exchange and the second digital assets company that has been added to the FCA's list of licensed cryptoasset firms.
Starting from January 2020, firms carrying out specific crypto-related activities in the UK are obliged to comply with the amended Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and register with the FCA.
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