Tom Lee of Wall Street is one of the industries more famous bulls. He believes that Bitcoin is horrendously undervalued at the moment and even expected Bitcoin to reach an all time high of $25,000.00 by the end of 2018. According to CNBC, Lee has recently come back from that prediction, stating that after a closer review of the markets, Bitcoin is only likely to just breach $20,000.00 this year and that $25,000.00 is now probably out of reach.
Lee speaks with great authority. As a Fundstradt Founder and as a critically acclaimed Wall Street Strategist, his predictions are often taken with a big hit of optimism. Lee is somewhat of an expert after all.
According to CNBC, Lee has said:
“The reason bitcoin looks really good here is the cost of mining around $7,000 fully loaded. And the difficulty is rising. So by the end of the year, it’s going to be $9,000.”
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In essence, as Bitcoin gets harder to mine, the value of the currency will shoot up. Lee recognises that this year will see a turning point in mining due to an ever reducing level of mineable Bitcoins. As we approach the last Bitcoin, prices will rise, in Lee’s eyes, this price will hit $20,000.00.
Moreover, according to CNBC, Lee has also compared the current status of the blockchain industry to that of a wireless radio on the spectrum of a smartphone. According to CNBC, Lee says:
“Bitcoin and blockchain, the technology underlying it, is a ‘multi-decade story’ that’s in the early stages of transformation. I did wireless [research] in the 1990s. I saw 20 years of mobile and internet convergence. To me, this is not that different in terms of how an industry has changed over time.”
Within this, Lee is referring to the blockchain as a system for the future. When the first wireless radios came out, nobody predicted the smartphone. Even through a period of 20 years, look how much has changed through wireless technology. Now apply this scale to the blockchain. Yes, we have a form of blockchain technology now, but the rate it could grow at promises us an awful lot more than what we have now.
I think what Lee is saying is – even if Bitcoin doesn’t hit $20,000.00 this year, this is a new technology part of a far bigger picture that promises us even bigger things in the future.