The Bitcoin market is the most popular of all its “colleagues” and even as successful as the asset has been especially when its market cap and dominance are considered, there is still no shortage of Bitcoin bulls.
There are several heavy-hitters in the industry who easily fall under this category and one of the most popular is Fundstrat Global Advisors co-founder, Tom Lee. Speaking at a CNBC Street Signs Asia interview, Lee has again doubled down on his $25,000 prediction for Bitcoin.
According to Lee, the only thing stopping this from happening is a simple expansion of the population of the Bitcoin community. The prediction was set back in 2017 and is supposed to come to fruition in a maximum of five years, placing the end date sometime in 2022. Lee still believes that the forecast is quite easily achievable, especially because Bitcoin has significant value.
“Cryptocurrencies are network value assets, meaning the more people hold the asset, the greater the value. In fact, it’s a log function – so if you double the users hold it, you get a quadrupling of value. To go to $25,000 you essentially need a little less than 4x rise, which means you need to double the number of people who hold Bitcoin.”
Apart from growing the crypto community as a sure way to ensure a Bitcoin spike, Lee also believes that the growth of the internet should not be underestimated. Drawing a comparison with the popular FAANG (Facebook, Apple, Amazon, Netflix, and Google) stocks which are the five biggest internet-based companies, Lee says that the much-needed growth that will see Bitcoin hit $25,000, will happen in just the same way.
“[For FAANG stock], 70% of their return is explained by the growth of the global internet in that period of time. In other words, it’s a LOG function of the internet’s growth, and that’s how cryptocurrencies are going to work.”
Lee is quite popular for his bullish predictions and made one back in August 2017, shooting for $6,000 at the end of that year. By the end of November, Bitcoin crossed $10,000 and went on to double that by December 2017.