Get All Access for $5/mo

Winklevoss Twins: Bitcoin Worth at Least 100 Times its Current Price Cameron and Tyler Winklevoss, who famously battled Mark Zuckerberg over Facebook's origins, are big investors in the digital currency and say it's worth 100 times its current value.

By Matthew J. Belvedere

This story originally appeared on CNBC

The Winklevoss twins are screaming bulls on bitcoin.

Cameron and Tyler Winklevoss—big investors in the digital currency—said Tuesday that bitcoin should be worth at least 100 times more than it's valued today.

"The small bull case scenario is a $400 billion market cap. So the market cap is around $4 billion right now," Tyler Winklevoss said in an interview at the DealBook conference that aired on CNBC's "Squawk Box."

The twins, who famously battled Mark Zuckerberg over the origins of Facebook, started buying bitcoin at $9. Their investment was worth $11 million in April at $120 per coin.

After a sharp drop, bitcoin has surged into record territory again, hitting $385 in early Tuesday trading on Mt. Gox—one of the many exchanges for the digital currency.

Cameron Winklevoss said he views their investment in bitcoin as a gold 2.0-play but also a bet on the technology: "The idea that payments are increasingly going to use a network like the bitcoin network to move money around the world."

The Winklevosses want to create a bitcoin exchange traded fund (ETF), accessible to all investors. "We filed an amended S-1 in October. And we're just still going through the process," Cameron said.

He explained how bitcoin works: "Miners mint bitcoins every 10 minutes. It's basically a computer algorithm." He said the computers built to mine are so specific "you couldn't really do it as a hobbyist."

Bitcoin was created by Satoshi Nakamoto, a pseudonym, Tyler said. "We don't need to know him because it's based on ... trust in cryptography, not trust in individual."

As for what regulators in Washington think about bitcoin, Cameron said, "I think everyone recognizes the innovation and doesn't want to stifle it. They just want to make sure there's healthy regulations so it's used in a safe and productive manner."

Last month, bitcoin plunged after U.S. authorities shut down the Silk Road site, an accused online purveyor of drugs and other illegal services. Bitcoin had been hit by the perception that it was used primarily for transactions on Silk Road, and many had expected demand to dry up after the website was closed.

But Tyler Winklevoss said those concerns were never realized: "Prices are double what it was before Silk Road was shut down. So the demand to use bitcoin for illicit activity was clearly almost zero."

Mainstream merchants are slowly adopting bitcoin. Cameron pointed out that e-commerce platform Shopify announced it will accept bitcoin, and so has China portal Baidu.

The digital currency has even made steps into the physical realm, with ATM manufacturer Robocoin launching the first bitcoin ATM in a Vancouver coffee shop.

Related: This Major Crowdfunding Site Now Accepts Bitcoin Pledges

Matt Belvedere is a veteran journalist at the intersection of where live television news programs and the Internet meet -- developing and managing an online and social media presence for CNBC's flagship morning show, "Squawk Box."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Branding

ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Is the AI Industry Consolidating? Hugging Face CEO Says More AI Entrepreneurs Are Looking to Be Acquired

Clément Delangue, the CEO of Hugging Face, a $4.5 billion startup, says he gets at least 10 acquisition requests a week and it's "increased quite a lot."

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

Business News

You Can Now Apply to Renew Your U.S. Passport Online — But There's a Catch

The U.S. State Department officially launched the beta program this week.