A BTC Faux Pas? Thomas Lee Still Sees BTC Reaching $25,000
- Tom Lee still believes BTC could reach $25,000 by year end, but said a $20,000-$22,000 is fair value.
Wall Street strategist and Fundstrat cofounder Tom Lee has been described as a Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that bull. However, Lee seems to be slightly less optimistic about where Bitcoin is headed before the end of the year--on CNBC’s Squawk Box, Lee appeared to shy away from his prediction that BTC would be worth $25,000 at the end of the year to a slightly more modest figure.
"Bitcoin has historically traded at 2.5 times its mining costs. It's not out of the question that it could be over $20,000 by the end of the year at fair value," he said, later clarifying that he still thinks a $25,000 year-end valuation is possible. Lee later said that he "may have misspoke [sic] a little bit,” clarifying that “we still think bitcoin can reach $25,000 by the end of the year or something like that."
Still, he said that “...given where mining costs will be and applying the historical average of 2.5 times mining costs, that would imply fair value over $20,000, roughly $22,000.”
Lee believes that investors shouldn’t be wringing their hands over a few thousand dollars. At press time, Bitcoin was trading for roughly $6,350, not far from its year-low of roughly $5,900. A $20,000 valuation at the end of the year would still be more than a three-fold increase for BTC.
Will Price Follow Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ?
Despite the doldrums that BTC has been stuck in for months, Lee believes that the price of BTC will eventually rise to reflect the increasing amount of ‘hash power’ (computing power) that is needed to mine each coin. "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,” he said.
His views echo those of journalist and Wall Street veteran Max Keiser, who tweeted in June that “price follows hashrate.” An increase in transaction fees and Bitcoin’s mempool also increased throughout June, signs that some believe could be pointing towards a higher valuation for BTC.
Price follows hashrate. https://t.co/p73ovdZarC
— Max Keiser (@maxkeiser) June 19, 2018
Lee sees this point in Bitcoin’s journey as a very normal continuation of a technology in its relatively early stages of life. Speaking of his time spent as chief equity strategist at J.P. Morgan from 2007 to 2014, Lee said, "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 [changes] over time.”
Wall Street strategist and Fundstrat cofounder Tom Lee has been described as a Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that bull. However, Lee seems to be slightly less optimistic about where Bitcoin is headed before the end of the year--on CNBC’s Squawk Box, Lee appeared to shy away from his prediction that BTC would be worth $25,000 at the end of the year to a slightly more modest figure.
"Bitcoin has historically traded at 2.5 times its mining costs. It's not out of the question that it could be over $20,000 by the end of the year at fair value," he said, later clarifying that he still thinks a $25,000 year-end valuation is possible. Lee later said that he "may have misspoke [sic] a little bit,” clarifying that “we still think bitcoin can reach $25,000 by the end of the year or something like that."
Still, he said that “...given where mining costs will be and applying the historical average of 2.5 times mining costs, that would imply fair value over $20,000, roughly $22,000.”
Lee believes that investors shouldn’t be wringing their hands over a few thousand dollars. At press time, Bitcoin was trading for roughly $6,350, not far from its year-low of roughly $5,900. A $20,000 valuation at the end of the year would still be more than a three-fold increase for BTC.
Will Price Follow Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain ?
Despite the doldrums that BTC has been stuck in for months, Lee believes that the price of BTC will eventually rise to reflect the increasing amount of ‘hash power’ (computing power) that is needed to mine each coin. "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,” he said.
His views echo those of journalist and Wall Street veteran Max Keiser, who tweeted in June that “price follows hashrate.” An increase in transaction fees and Bitcoin’s mempool also increased throughout June, signs that some believe could be pointing towards a higher valuation for BTC.
Price follows hashrate. https://t.co/p73ovdZarC
— Max Keiser (@maxkeiser) June 19, 2018
Lee sees this point in Bitcoin’s journey as a very normal continuation of a technology in its relatively early stages of life. Speaking of his time spent as chief equity strategist at J.P. Morgan from 2007 to 2014, Lee said, "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 [changes] over time.”