Bitcoin $25K in Five Years, 'Makes Perfect Sense' to Under 30s, Says Wall St Strategist - Bitsonline

Bitcoin $25K in Five Years, ‘Makes Perfect Sense’ to Under 30s, Says Wall St Strategist

Bitcoin could be worth $25,000 USD in five years despite recent setbacks, according to major Wall Street strategist Tom Lee. Advising people not to listen to naysayers, Lee said bitcoin’s value lies in its trustless distributed network — a notion that “makes perfect sense” to people under 30.

Also read: China Who? Nothing Can Stop the Bitcoin Price from Hitting $9000 Soon

Lee is a financial strategist and co-founder of Fundstrat Global Advisors. His online bio reads: “Analysis not opinions. Data science speaks louder than gurus.”

Strategist Tom Lee: Don’t Listen to Claims of Bubbles, Fraud

Speaking on CNBC’s “Fast Money”, Lee was asked if he remained bullish on bitcoin despite the recent regulatory tightenings in China. The People’s Bank initially banned ICO fundraising, then announced an intention to shut down cryptocurrency exchanges.

No doubt the Chinese actions will have a liquidity effect, he said — exchanges there make up 30 percent of global bitcoin trading volumes. Taking a dig at naysayers like JPMorgan CEO Jamie Dimon, Lee said:

“A lot of folks talk about bitcoin being a bubble, or a fraudulent currency. I think you need to be on the other side of that, very strongly.”

There really aren’t that many actual bitcoin holders today, he added. At least not as many as you’d think — his data showed probably about 300,000 holders of $5,000 in BTC or more, total.

Trusting Bitcoin ‘Makes Perfect Sense’ to Those Under 30

Lee described trust in Bitcoin “from a generational perspective”, comparing it to attitudes to gold versus the dollar in the 1980s. People under 30 find it rational to trust in Bitcoin’s “fat protocol“, or its underlying distributed network technology.

Tom Lee Fundstrat
Tom Lee

We should look at Bitcoin as a store of value, rather than what it’ll be worth in two weeks, he said. “And if it’s 5 percent of gold in five years, it’s $25,000 per unit.” (That calculation is based on the individual market cap of each asset, and bitcoin’s more hard-limited supply.)

As bullish as Lee’s latest prediction sounds, might still be conservative according to his analysis. In July, he made headlines as the “first widely followed analyst” (according to CNBC) to make such a claim about Bitcoin.

Fundstrat had issued a report titled “A framework for valuing bitcoin as a substitute for gold” which followed a similar thesis. At that time, Lee claimed his model showed bitcoin could be worth between $20,000 and $55,000 by 2022 — depending on a few variables.

Do you agree with Tom Lee? Let’s hear your thoughts.


Images via CNBC, Twitter

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