Trading of bitcoin futures on the Cboe has kicked-off, driving the price even higher. But, some investors are still wary of the cryptocurrency, either unsure of what it is or concerned about its volatility.
Gemini co-founders Tyler Winklevoss and Cameron Winklevoss, who were early investors in bitcoin back in 2013 and are now considered the first “bitcoin billionaires,” see the cryptocurrency as the next gold.
“We think bitcoin is gold 2.0, it’s a store of value,” Cameron Winklevoss told FOX Business’ Maria Bartiromo during an interview on “Mornings with Maria.” “Today it’s [bitcoin] about a $300 billion market cap, gold is at $6 trillion, so we think it could very well go up another 20 times from today … We think it’s definitely realistic that it could grow and disrupt gold and maybe even beyond that.”
“You think it could actually replace gold as a safe haven or as a hedge?” Bartiromo asked
“As a store of value and a hedge, all those things that gold provides in a portfolio,” Winklevoss responded.
He then compared the characteristics of bitcoin to gold.
“If you look at the characteristics and properties of gold, like scarcibility, portability, visibility, fungibility, bitcoin equals or surpasses gold.”
Bitcoin’s portability is an additional benefit over gold according to Winklevoss
“It’s way more portable with a 24/7 market … it’s very easy to move,” he said.
Cameron’s brother, Tyler, pointed out that some investors are concerned over what bitcoin is backed by, unlike the U.S. dollar which they know is backed by the Treasury Department.
“Bitcoin’s backed by cryptography, mathematics and one of the largest computer networks in the world. The dollar being backed by the U.S. government, a lot of people would cynically say that’s injecting counter-party risk, if a government’s collapse, currencies’ average life span is 27 years. Some think bitcoin’s more like a gold—gold’s been around for thousands of years,” he said.