Fundstrat Global Advisors Head of Research, Tom Lee, holds that the current price of Bitcoin is wrong based on a range of factors. The BTC bull has also refused to give any further price predictions.
Bitcoin’s Fair Value Between $13,800 and $14,800
According to Tom Lee, the current market conditions for Bitcoin are wrong. Bloomberg reports that the proponent has said BTC’s fair value is between $13,800 and $14,800.
Bitcoin’s fair value, given the number of active wallet addresses, usage per account and factors influencing supply, is between $13,800 and $14,800. – Lee has said.
The analyst also added:
Fair value is significantly higher than the current price of Bitcoin. 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.
While he refused to propose any price target, Lee also outlined that should Bitcoin wallets approach a mere 7 percent of Visa’s 4.5 billion account holders, the cryptocurrency’s fair value would be $150,000 based on his model.
Tom Lee: Stop Focusing Only on Price
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.
“We are tired of people asking us about target prices,” he quipped.
Despite the bear market, Lee remains ever-bullish about the future of the cryptocurrency industry as we head into 2019.
Crypto set for a Long-Haul
Lee’s statements, while optimistic, do raise a few questions. First off, while discussing Bitcoin’s current condition, the analyst refers to 50 million “crypto wallets.”
According to data from Blockchain.com, the number of Blockchain wallets is around 31.5 million. Even though this number will always increase, many of these wallets could be abandoned and it’s still nowhere near 50 million.
But Lee could indeed be proven correct in the long-term. While the price is down 85%, the number of “active wallet addresses” has only decreased by half since January’s peak, according to Bitinfocharts. While the network hash rate (i.e. network security) is still more than double what it was in January 2018 despite the recent difficulty adjustment to lower prices.
Lee said the next big trend — which is just around the corner in early-2019 — is institutional investors making giant leaps into crypto.
Roger Ver: Crypto’s Future is ‘Brighter Than Ever’
Tom Lee’s bullish outlook was echoed by Roger Ver, an early bitcoin enthusiast, and bitcoin cash evangelist. Last week, Ver said that the long-term future of cryptocurrency “is brighter than ever.”
Roger Ver — A polarizing figure who has been hailed as “Bitcoin Jesus” by some and lambasted as “Bitcoin Judas” by others — dismissed skeptics’ claims that the frequent hacks in the crypto ecosystem prove that crypto is a magnet for con artists.
Ver clapped back by saying the hacks and repeated attempted hacks are actually “bullish signals that cryptocurrency is here to stay for the long-term.”
He says the high-profile hacks merely underscore that virtual currencies are valuable.
“The fact that hackers are trying to hack it shows it’s worth something,” Ver reasoned. “If it wasn’t worth anything, hackers wouldn’t be wasting their time trying to hack it.”
Mike Novogratz, the founder of Galaxy Digital Holdings, is also unfazed by the state of the crypto market today. “Revolutions don’t happen overnight,” he said.
Novogratz predicts that 2019 will be a watershed year because big things are happening behind the scenes to prepare for a major explosion.
The former Goldman Sachs partner says institutional “FOMO” (fear of missing out) will drive the market up as cryptocurrency assets gain more mainstream acceptance and traditional finance players hop on the crypto bandwagon.
In Your Face, Anti- Futuristics
Here’s a flashback to some quotes about inventions that were initially dismissed that later went on to change 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.