VC Keith Gilabert says, “Bitcoin is Capitalism and it will Survive the Crash of Mt. Gox”
Keith Gilabert is bullish on Bitcoin (BTC), with a target price for the digital currency soaring to $10,000.00 per coin. The President of Fina V Capital Keith Gilabert states, “Our target price is based on the demand we see from hedge funds and the decentralizing of third world currencies.”
Gilabert states, “The value in Bitcoin is crashing on the Mt. Gox exchange because there is a lack of liquidity and confidence. Bitcoins were not meant to be stored like gold, they are meant to be spent and the price at Mt. Gox reflects the inability to withdraw funds.”
Furthermore, Mt. Gox is not a Bitcoin, they are a third party processor and just like in 2007 during the financial crisis over 400 banks went bust but that didn’t affect your ability to spend dollars. Gilabert says, “Any dip in Bitcoin price is a buying opportunity, this crisis in Bitcoin processors will show which processors are the best capitalized and which ones can build scalable systems.”
The problems for Mt. Gox began on June 19th 2013, when the US Department of Homeland Security and the Secret Service seized three accounts containing more than $5 million.
A survey by CoinDesk showed that 70% of customers cannot withdraw their money at Mt. Gox.
According to Gilabert, “The ability for Bitcoin to appreciate to $10,000.00 is based on the over 22,000 merchants that currently accept the digital currency. As more consumers use Bitcoins there will be reserves created, it’s a lot like having coins in your pocket, you just inadvertently created a reserve for that currency and have reduced the circulation.”
The maximum amount of Bitcoins that can be mined is 21million, Bitcoins can also be infinitely divisible so as more people begin to adopt the digital currency the higher the market value will climb. Gilabert states, “Bitcoins are pure capitalism and will be priced according to supply and demand, which we all know supply is limited and demand is increasing daily, we now have over 60,000 transactions a day.”
Fina V Capital recommends Coinbase and Bitstamp for wallets and processing. This is due to the amount of capital they have attracted from savvy investors such as Andreessen and Winklevoss.
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