Bold BTC Forecast: Can Bitcoin Price Really Reach $ 500,000 This Year?

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Bitcoin has seen an extremely strong rally in the past few months, bringing it from the region by $ 10,000 to $ 29,000. Since the beginning of the year, the cryptocurrency has risen even further.

While many investors are already up on their investment in BTC, there are still expectations of a macro-level recovery. And that’s despite growing concerns about a near-term correction as the market may have overheated after rising 100% in just a month.

Can Bitcoin Reach $ 500,000?

Tyler Winklevoss recently commented on his long-term expectations for Bitcoin price development. He has now reiterated a bold prediction he and his twin brother made – that BTC could hit $ 500,000 in the years to come.

Why do the two billionaires believe that?

In the oft-cited report , the two state that Bitcoin is likely to be a better investment than gold over time. In fact, they believe that BTC will outperform gold’s market cap over time as capital flows from one market to this new market:

Bitcoin has already made up significant ground against gold – from whitepaper to over $ 200 billion market cap in less than a decade. Today, the market capitalization of above-ground gold is conservatively $ 9 trillion. If we are correct in using a gold framework to value BTC and BTC continues down this path, then the bull scenario for Bitcoin is that it is undervalued by a multiple of 45. In other words, the price of BTC could go up 45x from where it is today, which means we could see a price of $ 500,000 per BTC. “

A capital flight from traditional investments in Bitcoin could cause a movement over $ 500,000 over time:

“If central banks start diversifying their foreign fiat holdings even partially into bitcoin, say 10%, then the 45x value will be revised up towards 55x, or $ 600,000 per bitcoin, and so on.”

Better than gold?

Many agree with the Winklevoss twins that Bitcoin is better as an investment than gold in the current macroeconomic environment.

Rick Rieder, CIO at the world’s largest asset manager, believes that Bitcoin has a lot of staying power and will do better than gold. According to Rieder, this could largely be due to the number of millennials and younger investors who prefer a BTC investment over a similar investment in gold.

Other prominent wealth managers have also addressed this, arguing that BTC is one of the best investment opportunities today.