We at bitqy are excited to see the growing adoption of bitcoin and the sharp increases in its value. Bitcoin pricing, as valuated by US dollars, has risen from just around $200 to a peak value of over $7,000 in just the last 24 months. Recently, Tom Lee, Managing Partner and Head of Research at Fundsrat Global Advisors, made a bold prediction that each bitcoin will be worth $25,000 USD in the next 5 years.
Lee is well respected with 25 years of experience in equity research and considers his estimate to be conservative. Lee’s prediction has received wide attention in the media since he first pondered the potential rise in value to the $25,000 level. An interview by Sara Silverstein on October 18, 2017, TOP STRATEGIST: Bitcoin will soar to $25,000 in 5 years, provides insight as to the reasons for Lee’s confidence.
Lee supports his claims based on short-term and long-term criteria. In the short term, he cites Metcalfe’s Law, where the value of a network is proportional to the square of the number of users. As bitcoin has become more accepted, the dire predictions of skeptics have failed to materialize, and the market gains confidence and more users every day. In the interview, Lee conservatively predicted the value of bitcoin to rise over $6,000 by mid-2018, which seems likely as the value already hit that target a month ago.
In the long term, according to Lee in Silverstein’s interview, bitcoin “represents a store of value because it’s an encrypted — personal encrypted database, that for seven years hasn’t been hacked.” Gold was the alternative store of value for the past generation, but this and future generations will continue to embrace the creation of value in the digital world. As cryptocurrencies replace gold as an alternative currency, bitcoin will continue to rise in value. Lee’s prediction of at least a $25,000 value for bitcoin is based on capturing as little as 5% of the gold market, not counting other alternative currencies.
Bitcoin is the most prominent cryptocurrency, but there are over 600 other tokens available today, including bitqy. We agree with Lee’s assessment that as more coins are issued, they will continue to rise in value and contribute to the rise in bitcoin’s value as well.