Tom Lee: Bitcoin will go up like FAANG shares

Bitcoin will reach a value of $250,000 due to the value of the network says Lee

Lee stated in an interview with CNBC’s Street Signs Asia on November 15 that crypto currencies are “network values” and share them with the world’s most successful tech stocks. The well-known Bitcoin bull, co-founder and Wall Street strategist at Fundstrat Global Advisors, spoke when asked about the logic behind the $25,000 from Fundstrat to 2022 for Bitcoin. With the fact that the 2017 figure was set as part of a five-year asset forecast, he remains convinced that it is “fairly easy to achieve:

 

“Crypto currencies are network values, i.e. the more people hold the assets, the higher the value. In fact, it’s a protocol function – so if you double the users, you’ll quadruple the value. To get $25,000, you basically need a little less than 4 times the increase, which means doubling the number of people who own Bitcoin.”

According to Lee, Fundstrat estimates that about half a million people own and use Bitcoin to reach a million users and a rating of $25,000. Recognizing that this is essentially a useful feature, Lee has compared the performance of FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) since their listing. So he explained:

 

“70% of their return is explained by the growth of the global Internet over this period. In other words, it is a LOG function of the growth of the Internet, and so crypto currencies will work.”

Overall, Lee believes that he considers Bitcoin to be very optimistic in the long run and that it is “the early days for digital assets” and that over time they will become a very institutional and established asset class.