Sometimes we want to know the opinion of those who are already successful in a field to encourage us to make decisions, and even more if it is about money. In this case, we tell you the opinion of Cameron Winklevoss about cryptocurrencies, especially Bitcoin.
Cameron Winklevoss, the co-founder of Gemini, recently compared the benefits of buying Bitcoin or Amazon stock. At that time he stressed that not having BTC is a worse decision than not investing in Amazon.
Given this, it should be noted that, from the first days, Amazon’s shares have increased from around US $ 250 to US $ 3,160.
Why does Winklevoss think that not investing in Bitcoin is worse than not investing in Amazon?
“Not owning Bitcoin today will be a worse investment decision than not investing in APPL, GOOG, AMZN and MSFT”, said. But we know that Winklevoss is not the first high-profile investor to draw comparisons between BTC and Amazon.
As the price of Bitcoin began to rise above $ 10,000, more people were encouraged to comment on good omens for the cryptocurrency. However, at the time of writing this post, BTC has regressed to almost back at $ 11,000. Which proves Bitcoin’s volatility at its best.
As the price of Bitcoin skyrockets, the cryptocurrency market’s “real” dominance of the cryptocurrency is revealed. The last time this Bitcoin stat reached a new high, BTC increased 3.5x.
Comparison between BTC and AMZN shares
There is no real similarity between Bitcoin and stocks. BTC is perceived as an emerging asset and its description is contested. Some see it as a store of value, others still see it as a risky asset.
In November 2018, when Bitcoin’s price fell to the $ 4,000 region, venture capitalist Fred Wilson compared BTC to Amazon. He said:
“So while crypto asset prices fell 80-95% in USD terms over the past year, they could and probably will go down. Amazon was down 80% annually in the post-bubble bear market in 1999 and halved again before hitting bottom almost two years after peaking“
However, one thing they have in common is that at some point the two assets have been considered outliers. In the early 2000s, after the tech bubble, the market was skeptical about the survivability of tech stocks. And well, here we are.
In this sense, Bitcoin is in an early stage of its development as an asset and technology, as well as Amazon in the early 2000s.
Wilson said two years ago: “Amazon peaked in the internet bubble in late 1999 at around $ 90 a share. Almost two years later, Amazon shares could be briefly bought at $ 6 each. And then, until the end of 2007, Amazon traded above the highs reached in 1999”
But of course this is all ancient history. And if you look at Amazon’s actions today, all that turbulence is barely visible.
What could this indicate for BTC?
As we have mentioned, these are different assets, which in a way may have a slight similarity, but only that. In the last week of July, BTC increased more than 30%.
Winklevoss said investors who protect themselves against inflation using Bitcoin also catalyzed the ongoing recovery of the BTC price. He said:
“Unlike 2017, this rally is being powered by Bitcoin as an inflation hedge and the ‘fear of being lost’ (FOMO) Ethereum DeFi” This, in a way, reminds us of what Paul Tudor Jones mentioned in May: that he considers Bitcoin as a hedge against inflationary monetary policy.
Overall, experts believe that at eleven years old, Bitcoin is still in an early stage of growth. The improved perception of Bitcoin as a store of value and a potential safe-haven asset could sustain BTC’s long-term momentum.
But this is still debatable, and only time could tell in a market as volatile as this one.