Bitcoin could be worth $50,000 US by 2020, says Wall Street strategist
For the first time ever, a big name on Wall Street has decided to chime in on the ever popular trend of providing the world with his very own Bitcoin price prediction. His name is Thomas Lee. His firm is called Fundstrat. His view on Bitcoin? It could be worth anywhere from $20,000-$55,000 US by the year 2022.
Lee stresses that even though Bitcoin’s market capitalization today, just over $37 billion US, is worth only a fraction of the value of gold, which is currently estimated at $7.5 trillion US, Bitcoin’s halving event will cause the coin to grow at a much slower rate than its golden counterpart.
Add to that a recent report from Bloomberg news that central banks are starting to strongly consider investing in cryptocurrency and Lee’s price target doesn’t seem so far-fetched. Even the International Monetary Fund is weighing in. A report published on June 19, 2017 by the IMF suggests that leveraging cryptocurrencies and blockchain technology would improve relationships with end-users thanks to increased levels of trust, security, privacy and more efficient financial services.
Lee’s opinion is definitely music to the years of Bitcoin and cryptocurrency enthusiasts alike, especially considering the dramatic downturn coin prices have experienced over the past month. Bitcoin’s largest competitor Ethereum for example has seen its price drop 50% in just the last couple of days. Prices are dropping so rapidly in fact that there is even a support group thread now available on Reddit where cryptocurrency holders are voicing their opinions and sorrows over the recently declining value of their portfolios.
Still, Lee, other market strategists, major banks, the IMF and crypto lovers everywhere are still bullish on the long-term prospects of blocking technology and many of the coins that have been born as a result of it. It seems more and more that owning a piece of this new ‘digital gold rush’ is becoming more and more mainstream, and the gold bars of yesteryear seem to be carrying less weight among a new, forward thinking generation of investors.