The famous bull of Bitcoin, Tom Lee, said that the criptomoneda could reach $ 25,000. According to the analyst, the key to this rise will be the increase in the value of the network. In an interview for Street Signs Asia-CNBC, Lee said that the cryptocurrencies “are assets of value network”. Feature that it shares with the technological actions most successful in the world. In addition, he also mentioned that the way through which Bitcoin will accrue value will be similar to that of companies in Silicon Valley.
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Tom Lee and his “assets of value network”
It is important to remember that Lee had already predicted that the price of Bitcoin would go to $ 25,000. In 2017 had already made the first forecast that, by 2022, the criptomoneda would reach these figures. In addition, that prognosis said that he still believed that he was a target “quite easy to achieve”. “The cryptocurrencies are assets of value network, which means that the more people you have the asset, the greater will be the value. In fact, it is a log function, so that if you double the number of users to which the retain, you will get a value quadruple. To get to $ 25,000, essentially needs an increase of a little less than 4 times, which means that you must double the amount of people who own Bitcoin”. And this is a goal fully as possible, according to the toro cryptographic. In fact Fundstrat company, that belongs to Tom Lee, estimates that about half a million people own and use Bitcoin. Therefore, it would take to reach a million of users to get a valuation of $ 25,000. To make this more clear, Lee established an analogy with the performance of the shares of FAANG from your quote to the public. Recalling that FAANG refers to Facebook, Amazon, Apple, Netflix and Google. “70% of your return (from the publicly traded) is explained by the growth of the global Internet in that period of time. In other words, it is a LOG function of the growth of the Internet, and this is how they are going to work the cryptocurrencies”. Lee is known for being an optimist with respect to Bitcoin, especially when he sees his long-term potential. Even said that “we still are early days for digital assets” and that, with time, will become assets with a high level of institutionality. “Once we get to that, it is another hockey stick,” concluded the bull of cryptocurrencies during your interview. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.