Tom Lee Says Bitcoin Will Reach $25,000 Due To Its Network Value

Fundstrat’s Tom Lee believes Bitcoin (BTC) will accrue worth worth following an analogous logic to the Silicon Valley tech titans.

Throughout an interview for CNBC’s Avenue Indicators Asia on present on Nov. 15, Lee argued that cryptocurrencies “are community worth property” — and share this with the world’s most profitable tech shares.

Lee — a famend Bitcoin bull, co-founder and Wall Avenue strategist at Fundstrat World Advisors — made his argument when requested concerning the logic behind Fundstrat’s $25,000 by 2022 forecast for Bitcoin.
Noting that the quantity was set in 2017 as a part of a five-year forecast for the asset, he stated he nonetheless suppose it’s “fairly simple to attain”: “Cryptocurrencies are community worth property, which means the extra folks maintain the asset, the higher the worth. The truth is, it’s a log perform — so if you happen to double the customers maintain it, you get a quadrupling of worth. To go to $25,000 you basically want rather less than 4x rise, which suggests it is advisable to double the quantity of people that maintain Bitcoin.” Lee stated that Fundstrat estimates that roughly half 1,000,000 folks personal and use Bitcoin so that you’d have to hit 1,000,000 customers to get a $25,000 valuation.

Noting that that is basically a utility perform, Lee drew an analogy with the efficiency of FAANG (Fb, Amazon, Apple, Netflix and Google) shares since their public itemizing. He stated: “70% of their return since public itemizing is defined by the expansion of the worldwide web in that time period. In different phrases, it’s a LOG perform of the web’s development, and that’s how cryptocurrencies are going to work.” When it comes to different elements, Lee stated he was very bullish on Bitcoin in the long run, saying he thinks it’s now “nonetheless the earliest days for digital property” and that over time they’ll turn out to be extremely institutional and a longtime asset class.