Tom Lee Believes Bitcoin Could Reach Over $100k
The head of research and co-founder at Fundstrat Global Advisors, Tom Lee hasn’t been turned away despite the constant declining downtrend in the price of Bitcoin. Even though the coin is currently trading below $3,400, Lee is confident in the leading cryptocurrency to prise again.
In order to provide his viewpoint, Lee explained that the number of active wallets, usage per account and supply considerations are all possible factors as to why Bitcoin could skyrocket similar to how it did in December last year.
“Fair value is significantly higher than the current price of Bitcoin,” he wrote. “In fact, working backward, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
In Lee’s belief, the mass adoption of Bitcoin will be driven by a higher level of acceptance as an asset class. Lee has said that Bitcoin’s fair value would be $150,000 if the number of active wallets approached seven percent of Visa’s 4.5 billion account holders.
Lee has always expressed his optimistic views on the leading cryptocurrency recovering in the future. As a speaker at the BlockShow Asia 2018, Lee noted that the crypto space as 50 million active wallets so far against the 254 million PayPal accounts in the third quarter of this year. In addition to this, there were 4.6 billion Visa and MasterCard accounts. As reported by CoinTelegraph, the co-founder compared Bitcoin to other payment systems too in terms of their social network value – Lee estimates that the cryptocurrency could be worth $10 million per coin in about ten years time.
Even though the market has seen better days than this past month, with Bitcoin losing 80 percent of its value, Lee has confirmed that his end of year price prediction for Bitcoin is $15,000 back in late November. On top of this, Lee pointed out two major types of crypto players, those who are “using it and have wallets in crypto,” and those who belong to a speculative side of the market.
Bitcoin is currently worth $3,323 at the current time of writing after being down 2.87 percent over the past 24 hours.
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