The biggest equity master among the major Wall Street Strategists Tom Lee, says the bitcoin figure reaching $55,000 can be possible, but the surety is still not confirmed by several other bitcoin experts.
Lee wrote in his report that “One of the drivers is crypto-currencies are cannibalizing demand for gold GCQ7, -0.07%, based on our model, we estimate that bitcoin’s value per unit could be $20,000 to $55,000 by 2022 – Hence, investors need to identify strategies to leverage this potential rise in crypto-currencies.”
Since the year has started bitcoin has shown the great surge in its price. From doubling the price and crossing the $3000 in the last few months. The potential in the cryptocurrency with its impressive jumps from one figure to another has been the top on charts.
According to Lee, investors will be looking bitcoin as gold the store of value, in fact, the total number of bitcoin is now started reaching its limit that makes the supply and demand more appealing to those investors and traders who are looking for the huge profits from the cryptocurrency market.
Another push to the bitcoin market can be expected to come from the central banks, that may hit the market cap of bitcoin to 500 billion USD.
“Bitcoin supply will grow even slower than gold,” Lee said. “Hence, the scarcity of bitcoin is becoming increasingly attractive relative to gold. This is a game changer, enhancing the legitimacy of the currency and likely accelerating the substitution for gold,” Lee wrote.- marketwatch