Bobby Lee thinks Bitcoin is going much higher, we just need to wait a bit
The name "Bobby Lee" may sound familiar to you as he was once the CEO of BTCC, China's first cryptocurrency exchange and one that was once the 2nd largest crypto exchange by volume several years ago.
He is also the brother of Charlie Lee, the founder and creator of Litecoin, who made headlines when he sold all of his litecoin stake very near the highs of 2017.
According to Bobby Lee, bitcoin is going to "flip gold" as the de facto store of value in the world.
Right now gold is an $8 trillion dollar market while bitcoin is worth about $160 billion, leaving plenty of runway for bitcoin.
Why does Bobby Lee think that?
According to Bobby, it's mostly about the scarcity factor.
Specifically, he had this to say:
“I predict the flippening (of gold to bitcoin in terms of valuation) will happen within 9 years and BTC will shoot up past USD $500,000."
Awesome.
Why is that?
“By 20th year, daily new output will just be ~255 BTC — yearly inflation of less than 0.5%. More scarce than gold!”
(Source: https://cointelegraph.com/news/bobby-lee-500k-bitcoin-price-flippening-of-gold-will-come-by-2028)
According to Bobby, it sounds like he is going off the fact that after a few more halvings, bitcoin will be more scarce than gold in terms of yearly inflation.
After the next halving, the yearly inflation will drop below 2% for the first time ever and be lower than the USD.
After another halving (or two) the inflation rate will be lower than that of gold and that will make it an ultra scarce asset.
Scarce enough to flip gold as the go to store of value and likely garner a price of $500k per coin.
My thoughts:
I think it could certainly happen, though it will depend on some things.
The main one being that it will have to actually replace gold in the confidence game.
There is a reason gold is worth close to $8 trillion, people trust it..
In general, people don't trust bitcoin.
They worry about it being stolen, it being hacked, it being replaced, it being banned, tax issues etc etc etc.
So, until we can get past some of those hurdles, I don't think it will get anywhere close to those price levels.
The good news is that in time, just about every one of those fears can be alleviated, at least potentially.
Stay informed my friends.
Image Source:
-Doc