The current price of Bitcoin is not a fair reflection of its value, argues research company chief…
Predictions over the state of the Bitcoin market are not in short supply at the moment, not least off the back of the currency’s price collapse over the past month. The value of Bitcoin has fallen by nearly half since the middle of November, and over 80% since the end of last year.
Fundstrat Global Advisors boss Thomas Lee, though, is one person who’s very much on the optimistic side when it comes to where crypto prices are going next. In fact, he’s argued that right now, Bitcoin is heavily undervalued.
Even though the price of Bitcoin is currently below $3500, Lee reckons the true value of it should be an awful lot higher. In fact, he reckons it should be sitting between $13,800 and $14,800. He came up with the number based on the number of active wallets, the amount of use each account is getting, and influences on supply.
Lee does argue that, in the future, a degree of mainstream acceptance is pivotal to Bitcoin’s continued price rises, drawing comparison with the likes of Visa. He also argued that the obsession over prices isn’t healthy. “We are tired of people asking us about target prices”, he declared.
To a degree, it’s inevitable that they do, though. Lee had predicted that the price of Bitcoin would touch $25,000 by the end of this year, something that’s clearly not going to happen. Still, even as its price stays low, he’s one of the growing number of voices to suggest there are much better days ahead.