The Winklevoss brothers believe bitcoin is the payments network of the future. While the cryptocurrency plummeted 60% in 2014, the twins predict that its market capitalization could easily reach $400 billion. To put things into perspective, that’s about the size of the payment companies most people are familiar with, like Visa (V), American Express (AXP) and MasterCard (MA).
According to the Winklevoss twins, $400 billion isn’t high enough. They believe that bitcoin could eventually become a gold-like asset and possibly even surpass it. According Tyler Winklevoss, the market cap could be in the trillions if bitcoin were to reach such a level.
At this point in time, bitcoin’s market cap is just $4 billion. A $1 trillion market cap is likely not in the near future, but the two Internet entrepreneurs believe it’s a possibility. The Winklevoss brothers are well-known for their investment in bitcoin. If it should ever become a gold-like asset, the two stand to gain tremendous profits.
There are still many skeptics of bitcoin. Some believe the cryptocurrency’s bubble has already burst and it will soon die out. One bitcoin is currently worth $265, which is a far cry from its $1,200 value in 2013. Despite its declining value, the Winklevoss brothers claim they’ve never sold a bitcoin and they don’t intend to either. They see it as a buying opportunity and claim that they’re in it “for the long haul”.
Questions of the cryptocurrency’s security have made investors apprehensive about investing in bitcoin. To help legitimize and secure bitcoin, the Winklevoss brothers announced their plans for a U.S.-based bitcoin exchange called Gemini.
Coinbase has already beaten the twins to the punch by unveiling an exchange of their own on Monday. Coinbase’s exchange is backed by the New York Stock Exchange and has been approved in nearly half the states in the U.S.