A price of $ 25,000 for Bitcoin in the future is a conservative estimate: Tommy Lee
Series strategist Tommy Lee joins the list of finance experts who predict the price of Bitcoin will reach $ 25,000 or more.
In an interview with Business Insider, Lee, who is already known for his bullish stance against Bitcoin in opposition to Wall Street, repeated common speculation that capturing the power of gold is key.
According to their research, five percent of the gold market capitalization would result in a "conservative" estimate of $ 25,000 per coin.
The five percent rule is too conservative
"It's very ... in fact, only with the most conservative set of elements can it reach five percent. Because, first, we assume that gold only appreciates essentially a nominal GDP. So there's no inflation, "he told host Sarah Silverstein.
The five percent figure has frequently emerged from sources throughout the Cryptostone industry. Lee, however, believes that the potential for significantly higher prices is "easy".
"The five percent number actually reflects the assumption that investors will allocate only five percent to alternative currencies in their combined portfolio," he continued.
"Today, that allocation is much higher, it is closer to 10 or 15 percent in some portfolios. Then, an allocation of five percent would give Bitcoin a value of US $ 25,000. You could easily get numbers of $ 100,000 or $ 200,000. "
Bitcoin prices have declined slightly this week after a further increase that led the virtual currency to nearly reach $ 6,000 for the first time.
In the short term and until the middle of 2018, Lee is comparatively conservative and predicts that the $ 6,000 mark will remain a ceiling until then.
"... When people talk about the volatility of Bitcoin today, it's forgetting that when we got out of the dollar, from the gold standard of the dollar, the volatility of gold for four years was almost the same as the current Bitcoin volatility," he concluded.
Source: CoinTelegraph
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