Bitcoin [BTC] could be worth over $10 million in 20 years, says Tom Lee

Thomas Lee aka Tom Lee, the managing partner of Fundstrat spoke in the Blockshow Asia 2018 on November 28, where he correlated Bitcoin [BTC] with FANG stocks and also speculated the price of Bitcoin in 20 years.

Tom Lee derived a comparison between earlier generations and their investments. Lee explained:

“The silent generation [born during the great depresion] is the only generation that bought gold as an investment when US Dollar standard in 1971. That was the only time gold which drove a 15 x gain in gold and it is because of a single generation and the same thing will happen with the crypto and millennial.”

Referring to the 1908s consumer stocks and the actual FANG stocks [Facebook Amazon Netflix and Google], Lee said that every generation creates its own FANG stocks and that the next big FANG is within Fintech. He added:

“The next big FANG is withing FinTech whether its square probably Bitcoin and that’s really the opportunity of the generation. Crypto I think is in the early stage, there’s only 50 million active crypto wallets but there’s 227 million PayPal accounts and there’s 4.6 billion Visa and MasterCard accounts and by using social network value… Bitcoin could be worth over $10 million per Bitcoin in 20 years period”

Focussing on the number of wallets and its growth, Lee said that wallet adoption was both a function of millennial adoption and the fact that Bitcoin and cryptocurrencies were becoming an asset class. He continued that by 2019 the crypto-ecosystem would see catalysts being introduced into it and that institutions would play a big role in that.

Lee explained that institutions would usually look at the 200-day moving average of Bitcoin’s price. He clarified that institutions wouldn’t jump into the Bitcoin market just because Bakkt launched and that they were waiting for Bitcoin to recover to its 200-day average, which is around $7000. He continued:

“Unless you think crypto is completely broken, we have a price correction that is taking place that has caused the price to fall even below the 200-day moving average but if you’ve got time a rise then that’s  not three months, not one year but two-three year, this is a golden time to be long on crypto. And we know that as soon as Bitcoin goes above 200-day there’s gonna be a flood of money coming.”

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