At least according to Tom Lee.
Tom Lee of Fundstrat Global Advisors, says that the crypto market, and specifically the bitcoin market, has it wrong.
Yes yes, the market is never wrong, it is the market, ie the collective opinions and actions of all participants.
More about it can be seen here:
https://cointelegraph.com/news/fundstats-tom-lee-says-fair-value-of-bitcoin-to-reach-150k-per-coin
Tom Lee is smart enough to understand all of that, so what does he mean exactly?
Well Mr. Lee has been following bitcoin for the past few years and has been looking at historical patterns and trends since it's beginnings.
One thing that he has come to understand is that bitcoin, historically, has traded at certain levels based on number of bitcoin wallets, wallet activity, and then of course supply.
Taking all of those things into account, bitcoin should be valued around $13,800-$14,800 according to Lee.
Lee also noted that bitcoin traditionally trades for about 2X the cost of mining, which has been stated to be around $6k globally, which would also give a price of about $12k.
Based on Visa's valuation per account, if bitcoin were to get to just 7% of 4.5 billion accounts, each bitcoin should be worth roughly $150,000 per coin.
Wowza!
It gets better...
Lee noted that bitcoin currently has about 50 million active wallets compared to the 254 million paypall accounts and the 4.6 billion Visa and MasterCard accounts.
If you compare bitcoin to these other payment networks in terms of value, bitcoin could, in theory, be worth something like $10 million per coin in a decade or so.
Say what?
Yes you read that right, if bitcoin catches on as a payment method and captures the value currently held by PayPal and major credit card companies, bitcoin would be worth $10 million per coin.
Well, that prediction officially takes the cake as far as anything I have ever heard.
If he is even fractions right, we will all be very happy.
Stay informed my friends.
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