Why Cameron Winklevoss Thinks Bitcoin Is going To Disrupt Gold

Why Cameron Winklevoss Thinks Bitcoin Is going To Disrupt Gold

The co-founder of the Gemini crypto platform and one-half of the Winklevoss twins, Cameron Winklevoss believes that bitcoin could disrupt gold, a safe haven asset with a market cap of more than $8 trillion. 

In comparison, as of 21st August Bitcoin has a market cap of $180 billion, about 2.25 percent of golds.

Cameron said:

“Bitcoin is going to disrupt gold, but it will also disrupt any volatile emerging market that doesn’t put the welfare of its citizens first and foremost.”

High Profile Investors

There have been a fair few billionaire investors that have expressed their optimism towards the long-term growth trend of Bitcoin over the past several years including Peter Thiel and the well-known BTC bull, Mike Novogratz.

As reported by CryptoSlate:

“Most bitcoin enthusiasts see the fungibility, liquidity, and transferability of the dominant cryptocurrency as the three major characteristics that would allow it to outcompete traditional safe-haven assets.

Currently, as seen in the downward trajectory of BTC since early June despite noticeably rising geopolitical risks, BTC is not acting as an inversely correlated asset to the global equities market.”

But even so, it has consistently shown signs of a non-correlated asset, demonstrating independent price movements based on the supply and demand within the global crypto market.

It’s still not clear as to whether bitcoin would demonstrate inverse correlation to the equities market in the short to medium term but investors like the ‘Winklevei’ foresee the asset to operate as an alternative store of value as it continues to evolve.

Last month in July, Cameron said:

“Amazon was e-commerce, and now it’s just commerce. Today, Bitcoin is ‘digital gold’ but tomorrow it will be just Bitcoin. It won’t need to be analogized or require any qualifiers.”

Coinbase has seen a big influx of $200 to $400 million in capital from institutional investors following the acquisition of Xapo custodial business. The CEO of the exchange, Brian Armstrong, said:

“Whether institutions were going to adopt crypto or not was an open question about 12 months ago. I think it’s safe to say we now know the answer. We’re seeing $200-400M a week in new crypto deposits come in from institutional customers.”