Gemini's billionaire co-founder Cameron Winklevoss believes not owning Bitcoin is a “worse decision” than not investing in Amazon. Since its inception, Amazon's stock has risen from around $ 250 to $ 3,160.
“Not owning Bitcoin today will be a worse investment decision than not investing in $ APPL, $ toget, $ AMZN
Winklevoss is not the first high profile investor to make comparisons between Bitcoin and Amazon.
In November 2018, when the price of Bitcoin dropped to $ 4,000, the venture capital investor was Fred Wilson compared BTC to Amazon. He said:
“While the price of crypto assets in USD fell 80-95% last year, they could and will likely go down. Amazon fell 80% annually on the bear market after the bubble and halved again before bottoming out almost two years after its peak. "
There is no real similarity between Bitcoin and stocks. The former is perceived as a new asset and its description is contested. Some see it as a store of value, others as a risk asset.
A common theme between the two assets, however, is that they were considered outliers at their respective times.
In the early 2000s, after the tech bubble, the market was skeptical about the survivability of tech stocks.
After peaking at $ 90, Amazon dropped to $ 6 before recovering. In the sense that Bitcoin is at an early stage of its development as an asset and technology, there is a similarity to Amazon.
Wilson said two years ago:
“At the end of 1999, Amazon peaked in the internet bubble at around $ 90 per share. Almost two years later, at a low point, one could buy Amazon for a short time for USD 6 / share. And then it took until the end of 2007 for Amazon to trade above its 1999 highs. But of course, all of this is an old story, and when you look at the Amazon map today, all of this turmoil is barely visible. "
Since June 27, the price of Bitcoin has increased by around 35% in four days from USD 8,800 to USD 11,900.
The explosive demand for decentralized finance ("DeFi") fueled Ethereum, which then led to an increase in BTC and other major cryptocurrencies.
However, Winklevoss said that investors who hedge against inflation with Bitcoin also catalyzed the ongoing price recovery at BTC. He said::
"In contrast to 2017, this rally is being driven by both Bitcoin as an inflation hedge and Ethereum DeFi FOMO."
Multi-billion dollar hedge fund manager Paul Tudor Jones also said in May that he sees Bitcoin as a hedge against inflationary monetary policy. He said:
"When I think of Bitcoin, consider it a tiny part of a portfolio. It could be the best actor of all, I think it could be. But I'm very conservative. "
Bitcoin is still eleven years old and is in an early stage of growth. Improving Bitcoin's perception of value storage and potential safe haven could maintain BTC's long-term momentum.
(tagsToTranslate) Bitcoin (t) Bitcoin price (t) Amazon