Tom Lee talks about fair market value
Cryptocurrency optimist Tom Lee believes that Bitcoin dark current price of around $3,300 does not reflect its real value because its fair market value is $13,800 to $14,800.
Fundstrat’s founder came up with this figure based on a calculation considering the number of active wallet addresses, usage per account, and supply metrics.
“Fair value is significantly higher than the current price of Bitcoin,” he wrote. “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
CCN.com adds: “[Lee] also insisted that Bitcoin’s fair market value would easily rocket to $150,000 if BTC wallets approach just 7 percent of Visa’s 4.5 billion account holders. While Lee has made countless headlines for his bitcoin price targets, he refused to give one this time, saying he’s getting annoyed with everyone’s pathological obsession with mundane daily price fluctuations.”
Lee predicts the institutional breakthrough for early 2019. He believes that’s when institutional investors are going to get into the crypto market.
CCN.com explains: “To facilitate institutional investments, Bakkt, which will facilitate bitcoin futures trading, is scheduled to launch on January 24.” Bakkt will also function as a kind of protection to prevent fraud and market manipulation.
Also in the first quarter of 2019, Nasdaq is planning to launch a BTC future product. If the world’s second largest stock exchange takes that step, it might serve as an example for further stock exchanges.
Roger Ver shares Lee’s optimism. Ha says that crypto hack attempts are “bullish signals that cryptocurrency is here to stay for the long-term. The fact that hackers are trying to hack it shows it’s worth something,” he explained. “If it wasn’t worth anything, hackers wouldn’t be wasting their time trying to hack it.”
For those who are losing faith in digital coins, let’s conclude by some famous quotes about inventions that were rejected first and then turned out to revolutionize the world:
“There is no reason anyone would want a computer in their home.” —Ken Olsen, computer pioneer.
“Apple is already dead.” —Nathan Myhrvold, former Microsoft CTO, 1997.
“Airplanes are interesting toys but of no military value.” —Ferdinand Foch, French general.
“[Online] shopping, while entirely feasible, will flop.” —Time magazine, 2000.