Why bitcoin is fool's gold

The cryptocurrency is not "gold 2.0"

Bitcoin.
(Image credit: iStock)

When most analysts think of bitcoin, they think of tulips. The cryptocurrency's run-up in recent months, in which it's rocketed from around $2,500 in mid-2017 to about $16,000 today, has all the hallmarks of a legendary bubble, right up there with the infamous tulip craze of the 17th century.

But Cameron Winklevoss, the former Mark Zuckerberg plaintiff turned cryptocurrency billionaire, thinks of gold. "We've always felt that bitcoin, given its properties, is gold 2.0 — it disrupts gold," he recently told CNBC. Bitcoin's market capitalization is $300 billion. But if Winklevoss is right that it will eventually displace gold, with its $6 trillion market capitalization, well, you do the math: "Long term, directionally, [bitcoin] is a multi-trillion-dollar asset — I don't know how long it takes to get there," Winklevoss concluded.

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