As part of a communications event earlier this week, Tyler and Cameron Winklevoss of licensed digital asset exchange, Gemini, interacted with the crypto community, giving their views on a wide range of subjects affecting the world of cryptocurrency.
The twins participated in an Ask Me Anything (AMA) communications session on Reddit. In setting the context for the AMA, they clarified that Gemini was established due to a need they encountered themselves i.e. having become interested in Bitcoin in 2012, the Winklevosses found that there was no safe and easy way to buy, sell and store Bitcoin or cryptocurrency generally. Consequently Gemini was founded as a solution to their own problem.
Having expressed the view in 2014 that Bitcoin would achieve a price of $40,000 in a ‘small bullish scenario’, a Reddit user asked them if they still maintained the same view. The twins responded that their view with regard to Bitcoin remains unchanged. Bitcoin is better at being gold than gold and over time, the market capitalization of Bitcoin will surpass the $7 trillion market cap. of gold, they maintained.
Another Reddit user expanded the discussion by asking them if Bitcoin will always be No.1. Cameron Winklevoss responded:
“Bitcoin is certainly the OG [original] crypto! It’s hard to defeat network effects – so in terms of ‘hard money’ (i.e., store of value) Bitcoin is most likely the winner in the long-term.”
The twins confirmed that Gemini is seeing a mix of both retail and institutional investors. They maintain that FIAT on-ramps are crucial to the cryptocurrency sector right now albeit that they foresee a future whereby everything will be digital including FIAT currency. It seems this was a direct reference to their Gemini USD (GUSD) stablecoin (which tracks the U.S. dollar) which they launched last year.
Within the last couple of weeks, the Winklevosses have come in for criticism for an advertising campaign they ran with slogans such as ‘Gemini: The Regulated Cryptocurrency Exchange’ and ‘Crypto Needs Rules’. Many in the community believe that this approach flys in the face of cryptocurrency, what it stands for and the reason why it exists.
In addressing this, Cameron Winkelvoss suggested that Gemini are not going to please everyone but that the healthiest and most vibrant economies have thoughtful rules to promote positive outcomes.
When queried, the brothers also addressed the subject of the elusive Bitcoin exchange traded fund (ETF), and expressed the view that they were as committed as ever to making an ETF a reality.
In July last year, the Securities and Exchange Commission (SEC) turned down their Bitcoin ETF. The following month, it rejected a number of other such applications proposed by other companies. Much speculation surrounds ETFs as they’re seen by some in the crypto space as a potential market catalyst.
Responding to further queries, Tyler Winklevoss said he views a successful ‘crypto-revolution’ as an internet that has become decentralized and open and money that does things that your current money does not. Future money should be “open 24/7/365” and you can “send or receive any amount of money to anyone around the world instantly and for next to free”.
The twins faced some criticism for promoting Bitcoin as a store of value. The direction of Bitcoin is something that has caused tensions in the community for quite some time – resulting in the Bitcoin Cash fork in 2017.
Tyler explained that whilst they believe in Bitcoin as a store of value, they acknowledge that being a good store of value is in conflict with the aspiration of Bitcoin becoming a good medium of exchange. However, he is of the opinion that the real point of consideration is true decentralization – with its implications for block size and the ability of Bitcoin to remain censorship resistant – which is more significantly at odds with the quest for scalability and the development of Bitcoin as as a medium of exchange.