Dan Tapiero: ‚There is no doubt that Bitcoin will surpass gold

26. November 2020

According to the co-founder of Gold Bullion International, Bitcoin could reach a price between $300,000 and $500,000.

Dan Tapiero, co-founder of Gold Bullion International, believes it’s only a matter of time before Bitcoin reaches a six-figure price.

Host of Anthony Pomp Podcast, Tapiero said Bitcoin Bank scam appreciation potential is incredible, but he believes investors should own both gold and BTC:

„In the next five years the price of gold could reach $4,000, or double that. But if gold will reach $4,000, then Bitcoin will reach a value between $300,000 and $500,000, which is an appreciation of 20 or 30 times. […]

Even in the world of gold […] no one would deny this fact.“

Tapiero predicts that institutional investors and whale finance will invest between 5 and 15 percent of their portfolios in Bitcoin, underlining that this industry is currently worth 100,000 billion dollars:

„It’s a huge sum. I mean, 15 percent of 100 trillion is 15 trillion“.

Bitcoin represents a cover for the fiat system, he explained: when market capitalization reaches a value of several trillion dollars, it will become easier to manage for large investors.

Gold is a reserve of value, but this is only one aspect of BTC. Bitcoin is an entire network, and for this reason it will become much bigger than gold:

„There is no doubt that Bitcoin will outperform gold.“

Many other analysts have expressed positive opinions about Bitcoin. Brian Estes, chief investment officer of Off the Chain Capital, predicted that BTC could easily exceed $100,000 in a year and even reach $288,000 by the end of 2021.

CNBC host Jim Cramer also believes in the future of Bitcoin. Despite his skepticism during the 2017 bull market, he recently spoke out in favor of using BTC as a hedge against inflation:

„I think that my children, when they receive my inheritance, will feel more comfortable with cryptocurrency than with gold.

Coinbase Pro has disabled margin trading

Due to the „new guidelines from the Commodity Futures Trading Commission“, Coinbase Pro suspended margin trading

The U.S. exchange Coinbase Pro has announced that, as of today, customers will no longer be able to use the margin trading functions of the platform.

Paul Grewal, Chief Legal Officer of Coinbase, said that as of 11:00 CET on November 25th it will no longer be possible to open new margin trades. The product will be completely removed in December, „once all existing margin positions have expired“.

Grewal explained the reasons for this choice:

„We believe there is a need for clear, common sense rules for margin lending products to protect U.S. clients and provide them with greater peace of mind.

We will work closely with regulators to achieve this goal.“

Margin trading was removed in response to „new guidelines from the Commodity Futures Trading Commission“: in March, the CFTC clarified its position on „actual delivery“ of assets, including cryptocurrency purchased using leveraged trading. The CFTC has established a 28-day limit for physical delivery: at the end of this period, buyers can freely use the assets thus obtained.

In traditional futures markets, users bet on the future value of a given asset. If they hold those futures until the end of the contract, the asset in question is physically delivered to them. However, CFTC guidelines make it clear that for digital assets the parties selling tokens and facilitating the trade (such as Coinbase) would have no control over the cryptocurrency used for margin trading once delivered to the client.