{"id":27855,"date":"2020-08-28T11:37:29","date_gmt":"2020-08-28T08:37:29","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=27855"},"modified":"2025-08-26T23:34:22","modified_gmt":"2025-08-26T20:34:22","slug":"winklevoss-brothers-predict-bitcoin-at-500000","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/winklevoss-brothers-predict-bitcoin-at-500000\/","title":{"rendered":"Winklevoss Brothers Predict Bitcoin at $500,000"},"content":{"rendered":"<p>The founders of Winklevoss Capital and the Gemini bitcoin exchange, Tyler and Cameron Winklevoss, believe that the price of bitcoin could break above the $500,000 mark. They are confident that bitcoin outperforms gold, oil, and the US dollar as a store of value and is the only long-term hedge against inflation.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">The U.S. dollar is no longer a reliable store of value. <a href=\"https:\/\/twitter.com\/winklevoss?ref_src=twsrc%5Etfw\">@winklevoss<\/a> and I make the case for $500K <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a><a href=\"https:\/\/t.co\/scnBM5DcIn\">https:\/\/t.co\/scnBM5DcIn<\/a> <a href=\"https:\/\/t.co\/0ehHOy29T6\">pic.twitter.com\/0ehHOy29T6<\/a><\/p>\n<p>\u2014 Tyler Winklevoss (@tylerwinklevoss) <a href=\"https:\/\/twitter.com\/tylerwinklevoss\/status\/1299023374392360964?ref_src=twsrc%5Etfw\">August 27, 2020<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In a joint article, the entrepreneurs detailed how the Federal Reserve responded to the economic crisis provoked by the Covid-19 pandemic. They criticized quantitative easing (QE) and debt financing, and predicted a &#8220;Great monetary inflation&#8221; in the near future.<\/p>\n<blockquote>\n<p>&#8220;In the last six months, the Fed printed two-thirds of the amount it printed in the previous 11 years,&#8221; the Winklevosses noted.<\/p>\n<\/blockquote>\n<div id=\"attachment_108627\" style=\"width: 1034px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-108627\" class=\"wp-image-108627 size-large\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/WCM-Federal-Reserve-Balance-Sheet-2020-Winklevoss-Capital-Management-3-1024x656.png\" alt=\"\u0411\u0440\u0430\u0442\u044c\u044f \u0423\u0438\u043d\u043a\u043b\u0432\u043e\u0441\u0441\u044b \u043f\u0440\u0435\u0434\u0441\u043a\u0430\u0437\u0430\u043b\u0438 \u0431\u0438\u0442\u043a\u043e\u0438\u043d \u043f\u043e $500 000\" width=\"1024\" height=\"656\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/WCM-Federal-Reserve-Balance-Sheet-2020-Winklevoss-Capital-Management-3-1024x656.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/WCM-Federal-Reserve-Balance-Sheet-2020-Winklevoss-Capital-Management-3-300x192.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/WCM-Federal-Reserve-Balance-Sheet-2020-Winklevoss-Capital-Management-3-768x492.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/WCM-Federal-Reserve-Balance-Sheet-2020-Winklevoss-Capital-Management-3-1536x983.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/WCM-Federal-Reserve-Balance-Sheet-2020-Winklevoss-Capital-Management-3.png 1640w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p id=\"caption-attachment-108627\" class=\"wp-caption-text\">Fed balance sheet. Data: Winklevoss Capital.<\/p>\n<\/div>\n<p>To corroborate their words, a day earlier Fed Chair Jerome Powell <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-falls-as-powell-signals-readiness-to-push-inflation-higher\">said<\/a> that the central bank is prepared for inflation to rise above the 2% target. He did not see any threat in such an outcome. An alternative, in his words, would be a sequence of broad-based defaults, including sovereign defaults.<\/p>\n<blockquote>\n<p>&#8220;The debt-to-GDP ratio in the United States this year will rise more than in any other decade,&#8221; the Winklevosses noted.<\/p>\n<\/blockquote>\n<p>The same trend is evident in other countries, the Gemini founders added.<\/p>\n<p>When it becomes necessary to service inflated debts, governments will have three options, they continued.<\/p>\n<ul>\n<li>Default on part of the debt (hard default);<\/li>\n<li>Austerity policies;<\/li>\n<li>Inflation growth to reduce the value of debt (soft default).<\/li>\n<\/ul>\n<p>In their view, Powell signaled a tilt toward the third option.<\/p>\n<p>The brothers also recalled gold&#8217;s drawbacks: uncertain supply (including gold on asteroids), portability challenges, and the risk of confiscation. US authorities, they noted, are already enacting laws necessary for mining in space.<\/p>\n<div id=\"attachment_108628\" style=\"width: 887px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-108628\" class=\"wp-image-108628 size-large\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-vs-Gold-Graph-Winklevoss-Capital-Management-877x1024.png\" alt=\"\u0411\u0440\u0430\u0442\u044c\u044f \u0423\u0438\u043d\u043a\u043b\u0432\u043e\u0441\u0441\u044b \u043f\u0440\u0435\u0434\u0441\u043a\u0430\u0437\u0430\u043b\u0438 \u0431\u0438\u0442\u043a\u043e\u0438\u043d \u043f\u043e $500 000\" width=\"877\" height=\"1024\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-vs-Gold-Graph-Winklevoss-Capital-Management-877x1024.png 877w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-vs-Gold-Graph-Winklevoss-Capital-Management-257x300.png 257w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-vs-Gold-Graph-Winklevoss-Capital-Management-768x896.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-vs-Gold-Graph-Winklevoss-Capital-Management-1316x1536.png 1316w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-vs-Gold-Graph-Winklevoss-Capital-Management.png 1640w\" sizes=\"auto, (max-width: 877px) 100vw, 877px\" \/><\/p>\n<p id=\"caption-attachment-108628\" class=\"wp-caption-text\">Comparison of bitcoin and gold properties. Data: Winklevoss Capital.<\/p>\n<\/div>\n<p>If bitcoin follows gold&#8217;s path and\/or partly replaces fiat reserves held by central banks, its price could soar to $500,000\u2013$600,000, the Winklevosses said.<\/p>\n<p>In March, the Fed cut its key rate to 0\u20130.25%. At that time, the community&#8217;s views on whether bitcoin could serve as an inflation hedge were divided.<\/p>\n<p>In August, the Nasdaq-listed MicroStrategy <a href=\"https:\/\/forklog.com\/en\/news\/microstrategy-becomes-the-first-nasdaq-listed-company-to-invest-part-of-its-capital-in-bitcoin\">acquired<\/a> 21,454 BTC (~$250 million at the time of the deal). The company regards bitcoin as a more reliable alternative to the devaluing US dollar.<\/p>\n<p>In Fidelity, the investment firm managing assets of $8.3 trillion, <a href=\"https:\/\/forklog.com\/en\/news\/fidelity-investments-calls-bitcoin-a-store-of-value-and-a-hedge-against-financial-system-risks\">they consider<\/a> bitcoin to be a hedge against problems in the traditional financial system. Its president has already <a href=\"https:\/\/forklog.com\/en\/news\/fidelity-investments-president-files-for-new-bitcoin-fund\">filed<\/a> with the U.S. SEC an application to register a bitcoin fund aimed at institutional investors.<\/p>\n<p>Earlier, the author of the bestseller \u201cRich Dad Poor Dad\u201d and entrepreneur Robert Kiyosaki said that Fed and U.S. Treasury actions are bringing a serious banking crisis closer and that it is time to invest in bitcoin.<\/p>\n<p>Read about the Fed\u2019s policy during the pandemic and the current economic crisis in our articles here, here and <a href=\"https:\/\/forklog.com\/en\/news\/coronavirus-crisis-and-markets-has-bitcoin-finally-proven-its-status-as-a-safe-haven-asset\">here<\/a>.<\/p>\n<p>Read about helicopter money here.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\"https:\/\/t.me\/forklogfeed\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog Feed<\/a> \u2014 all the news stream, <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ForkLog<\/a> \u2014 the most important news and polls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Founders of Winklevoss Capital and the Gemini crypto exchange Tyler and Cameron Winklevoss believe bitcoin price could cross the $500,000 mark. They are confident that bitcoin outperforms gold, oil, and the US dollar as a store of value and is the only long-term hedge against inflation.<\/p>\n","protected":false},"author":1,"featured_media":27856,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1146,1883,1140],"class_list":["post-27855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-market-forecasts","tag-economic-crisis-2020","tag-winklevoss-twins"],"aioseo_notices":[],"amp_enabled":true,"views":"42","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/27855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=27855"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/27855\/revisions"}],"predecessor-version":[{"id":27857,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/27855\/revisions\/27857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/27856"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=27855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=27855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=27855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}