Tom Lee: "fair value of Bitcoin (BTC) well above the current price"

Joanna Estrada
December 15, 2018

Lee wrote, "Fair value is significantly higher than the current price of Bitcoin", adding, "In fact, working backward, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million now". He suggests considering factors like the number of active Wallet addresses, usage per account and other factors such as the deflationary supply of the currency, between 13.800 and 14.800 United States dollars, to estimate the price. Declining to make any future predictions on the cryptocurrency's price, he believes that Bitcoin's dismal price of roughly $3,300 is wrong, and the coin is now extremely undervalued, by as much as $10,000. The crypto bull also stated that the fair market value of Bitcoin (BTC) would easily rise to $150,000 if the number of active BTC wallets approach 7% of the 4.5 billion account holders on Visa.

"We are exhausted of people asking us about target prices". But Lee remains confident about the outlook for the industry and his own rating.

Early 2019: The Date Bitcoin Futures is Set to Launch?

. Bakkt will offer both custody and price discovery for BTC (which is now regulated by the CFTC as a commodity) in a way that will stop market manipulation as well as fraud. In similar fashion, Nasdaq, the world's second-largest exchange, is looking to launch a Bitcoin futures product in early 2019 according to CCN.

Monitor Bitcoin Cash Development With the Coin Dance Tracking Page
BCH protocol development under discussion

Unfortunately, Lee's lofty price predictions have fallen short, and given the current market situation, it is impossible to reach Lee's year-end target. Ver, a notable figure in crypto space dismissed skeptics' claims that the frequent hacks in the crypto ecosystem prove that crypto is a magnet for con artists. He responded saying the repeated attempts of hacks are actually "bullish signals that cryptocurrency is here to stay for the long-term". His sentiment regarding institutional interest in crypto markets echoes what the founder of Galaxy Digital Mike Novogratz said during an interview with CNBC a few days weeks ago. Hence we should be prepared for a major explosion.

Increased crypto-adoption is a growing need for the market to become a universal, ubiquitous currency, with Lee affirming the adoption of Bitcoin and its acceptance as an asset class is what will drive its growth in the following year.

Other reports by Click Lancashire

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