Is Bitcoin A $400 Billion Market?
Bitcoin, the open source P2P currency, may one day hit a $400 billion market capitalization. Where did this number come from? The Winklevoss twins. Tyler and Cameron Winklevoss are the twin brothers that made a large settlement with Facebook co-founder Mark Zuckerberg worth over $68 million a few years ago. The Winklevoss brothers revealed their thoughts on Bitcoin possibly hitting $400 billion at the Dealbook conference in New York.
“Today, [Bitcoin’s market cap] is at $4 billion,” stated Cameron Winklevoss in an interview with Andrew Ross Sorkin at the event. “We believe [it could reach] $400 billion.” The Winklevoss twins are working on an ETF that will let retail investors tap into virtual currencies.
The Winklevoss twins are now venture capitalists that have at least an $11 million stake in Bitcoin as of this past April. The price of Bitcoin has tripled since then. Silk Road, one of the top Bitcoin marketplaces, shut down recently. When the Winklevoss twins were asked about Bitcoin not being traceable, Tyler said that this is the same case with the U.S. dollar. He pointed out that no one has to reveal their IP address when making a Bitcoin transaction. The Winklevoss learned about Bitcoin when talking to a stranger during a vacation in Ibiza.
In case regulators attempt to shut down Bitcoin, the Winklevoss twins believes that innovation in the currency will happen overseas. Possibly, Bitcoin innovation will happen in China because Baidu accepts the currency.