bitcoin and ethereum right now at twenty seven thousand dollars and seven hundred dollars
respectively let's talk price potential let's start with bitcoin digital gold see the market
cap of physical gold is 9 trillion dollars meaning the entire supply of physical gold is priced at 9
trillion dollars today bitcoin is being recognized as gold 2.0 as a store of value if
bitcoin disrupts gold then that means it would take a market cap of nine trillion dollars and
have a price per coin be 500 000 per bitcoin tyler winklevoss explains this what do you think
needs to happen to go from 20 000 to eventually getting to 500 000 so i think it's just more
time and education and more data points but how i get to 500 000 it's very simple math
the market cap of of gold is 9 trillion so the the entire supply of gold is priced at 9 trillion if
bitcoin is gold 2.0 and it disrupts uh gold then its market cap also has to be 9 trillion but today
bitcoin's market cap is 330 billion so it's got to increase somewhere like 25 to 30 x from here
so put on a 25 to 30 x multiple on the price of a bitcoin today which is let's say 18 000 20 000
um that easily gets you to 500 000 of bitcoin so if we're right that um bitcoin is better than gold
and the way we get to that is we look at the characteristics of why people find gold valuable
it's scarce it's portable it's divisible bitcoins uh better than scarce it's fixed you can send
it like email you can divide a bitcoin into 100 million pieces so across the board all the reasons
why humanity has found gold valuable for the last multi-millennia bitcoin beats it so it should be
worth as much or more than gold and for that to happen a bitcoin has to be worth 500 000 uh
dollars a bitcoin by the way that is only if bitcoin is a gold disrupter if bitcoin is both
a gold disruptor and a currency disrupter then bitcoin's price would actually be higher than 500
thousand dollars tyler winklevoss explains this if bitcoin just becomes a mature better store
of value i think we see 500 000 a bitcoin if it's also used as a currency there is there's efforts
like the lightning network and other sidechain projects if you can also use bitcoin as a currency
the value actually goes up much higher if it can be both a sort of value and a way for a currency
to work on the network are you following this because i want to get to ethereum in just a second
but so you fully understand if bitcoin is only seen as a reliable store of value it would reach
a price point of 500 000 per coin if bitcoin goes beyond that and is seen as both the store of value
and a widespread medium of exchange as a currency its value would be even higher than that
if bitcoin is eventually seen as a full global money the global reserve currency of the world
then a 500 000 bitcoin starts to seem very conservative indeed tyler winklevoss explains this
there are other instances too where bitcoin itself the network could be like the substrate
of other networks and just the security of it it would basically become like the digital
global reserve currency of all crypto then it's even higher so when i say 500 000
of bitcoin that's actually the conservative case it could easily be a lot a couple times more or
even or a magnitude more and by the time it gets there like you're never selling your bitcoin i was
listening to this podcast and they were joking about like this bitcoin meme of the matrix and
like you know when when bitcoin gets to like a million like you won't have to sell it kind of
thing morpheus and neo like music what happens when it gets to millions like you won't have to
sell it so you understand everything we just went over correct today's bitcoin market cap is about
500 billion today's gold market cap is about 9 trillion meaning that you need to increase
20x from here to take gold's market cap so with the bitcoin being about 25 000 per coin
25 000 multiplied by 20 equals 500 000 per bitcoin let's talk about ethereum's price potential now
listen very closely as to what tyler winklevoss has to say regarding ethereum especially listen
at the end he gives his prediction ether is the same thing for indexing um a piece of the ethereum
network which is a digital or decentralized global computer a lot of people equate ether to digital
oil so if you want to get into the crypto game my suggestion is own some bitcoin digital gold
and own some ether digital oil and with those you have most your bases covered love that and with
ether i know it's you know not as talked about in the media but when it comes to the predictions of
where ether can go and how it's utilized and where it could be from a price perspective
like what's your thoughts on that on where ether could go from a place of value so i
um i think it's very high um in some ways it's it i haven't done like math on that lately so uh for
disclosure and we've talked about this before that we are we have material stake in ether as well
um like you you you mentioned earlier the media loves bitcoin because it's easier for consumers or
readers to understand that and they they harp on that and that makes sense but um what's less
talked about and less known is that we are huge fans of ether or ethereans um if you
will in in the slang so look i think um ether has tremendous capabilities because bitcoin's digital
gold right it's sort of moving value from a to b and there doesn't seem to be a huge appetite
in the community to to experiment or sort of screw it up right it's like we've got a good thing going
let's not run too fast let's not um be too exotic whereas ethereum is like you're it's a
decentralized operating system so the promise is that you can create these applications
on top of it permissionless the same way you could build an application i don't know about
anymore but back in the day you could build a company on top of facebook so companies like zynga
which actually ipo'd and was worth i think at least a billion dollars was a company built
on top of facebook so most companies today are built on top of a cloud computing service like
amazon so you rent space from jeff bezos and amazon ethereum is a decentralized amazon where
you can build your applications there and you run the computing power by owning ether instead of
running your credit card through amazon cloud aws web services you just pay the network in ether uh
it's it's not centralized it's not a company it's a centralized network and you can um you could you
could run you could create decentralized twitter on it you could create decentralized facebook
decentralize whatever no one can stop it um no one really controls it it's owned by the users that's
the beauty of a cryptocurrency is that the value accrues to the people who use the network not just
um a few people in a company in silicon valley yeah um so you know ether has got to upgrade it's
it's moving to eth2 there's there's some scalable things that it's got to work through but like i'm
an optimist and the smartest folks in the room are are working on it so if if ether is your global
computer in the future what's that worth um it's got to be a ton and it's got to be worth
as much as digital gold i would think maybe more did you catch that if ethereum succeeds
as being an open source base layer for decentralized applications around the world
what is that worth what's that worth um it's got to be a ton and it's got to be worth um as much
as digital gold i would think maybe more okay so if ethereum is worth as much as digital gold
well that would mean that it would also take a 9 trillion dollar market cap so today ethereum has a
market cap of 80 billion so 90 trillion divided by 80 billion equals a 112 times increase theorem's
price today is 700 times 112 equals over 75 000 so a 500 000 bitcoin and a 75 000 ethereum do you
agree with this do you disagree with this do you think that tyler winklevoss is a good person to
follow in the space i do i follow him here's the thing obviously investing in cryptocurrency comes
with risk and anything can happen and ethereum is riskier than bitcoin we understand this
but if there's one takeaway that you can glean from this video take away this we can see how
the perception and the rhetoric and the education around the cryptocurrency market is developing so
invest accordingly well make your own decisions but invest accordingly at least that's what i'm
doing this bull market is just getting started we keep you informed on a daily basis meaning
make sure you subscribe to the channel turn the notification bell on all and i'll see you in 2020