Since the very beginning of 2017, Bitcoin price has been suffering from extreme volatility. One week the price chart topped records following relaxation of regulation whereas the next week the price slipped down the ladder in the aftermath of ICO ban in China and forcing the Bitcoin exchanges to stop it’s operations. Amidst all such upheavals, certain Bitcoin enthusiasts are still banking on this revolutionary cryptocurrency with high hopes.
Tom Lee, the former MD of JP Morgan Chase currently heading the research division of Fundstrat Global Advisors belongs to this group of cryptocurrency aficionados and feels that the price of Bitcoin price will cross the $25000 mark within the coming five years. In a recent interview conducted by CNBC’s Fast Money program, Mr Lee drew close comparisons in between this Bitcoin and the yellow metal which was once considered the penultimate safe haven.
(Also Read: Bitcoin price to reach $300,000- Snapchat Investor )
Chinese officials caused ripples through cryptocurrency market when they announced probably ban on Bitcoin exchanges within this month end. However Mr. Lee feels that this whole situation will usher in greater advantages as even if the Chinese exchanges which hold approximately 30% of global Bitcoin value, take the final call on banning the digital currency, they will not have any say in its forced selling aspect. A large number of people still consider the Bitcoin phenomenon as a momentary bubble. Thus their perception will also have a big role in shaping the Bitcoin market.
Mr Lee was quoted saying:
“Well for instance, you know number one Bitcoin is not what people think… We have some data, there’s only 300,000 holders of at least $5,000 so think about that that’s like saying the iPhone was a bubble in 2007 four days into the sale because there were 500,000 of iPhones. So it’s not that many holders of Bitcoin you know when you think about how many wallets there are today that holds $5,000, it’s huge so I think it’s still very early stages.”
This cryptocurrency market laureate also feels that the chances of coming up with a fake Bitcoin is marginally low as the same would require a financial backing of $30 billion. He says:
“I think it can be very threatening to financial institutions to see that hey, trust is created on the network and on the distribution network by the way from generation perspective I think people under the age of 30 think that makes perfect sense.”
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