Thomas Lee is known as a crypto bull because he is one of the founders of Fundstrat Global Advisors. His latest report made on December 13 made many BitCoin holders sigh with relief as he believes that the current price of BitCoin is much lower than its fair value.
On Thursday, the expert with many years of analyst experience offered a note according to which BitCoin should cost within the range of $13,800 and $14,800. This conclusion has been made by him on the basis of the number of currently used wallet addresses, per account usage, and factors that influence supply. He mentioned the immediate rise that happened last year, some pause at the macroeconomic level and treasury sales during ICOs.
According to Lee, because of the price BitCoin features today, the fall of cryptocurrency wallets should be very significant – from 50 to 17 million.
However, Lee also mentioned the factors which are going to increase BitCoin value. They include the fact that BTC is massively adopted all around the world and being accepted as a separate asset class. His most promising note was a viewpoint that once BitCoin will cost $150k per each coin and it will happen when BitCoin wallets will reach 7% of the total number of Visa account owners.
Lee sounds rather optimistically about the future of BitCoin. His speech at BlockShow Asia 2018 explained that today the number of BTC wallets is not big enough to outnumber other payment systems. 50 million wallets can not compete with 254 million accounts of the most popular online payment system PayPal and 4.6 billion accounts of Visa and MasterCard owners. He also supposes that the growing value of Bitcoin as a social network May increase its price up to $10 million per each coin.
Even the latest market crash has not changed Lee’s optimistic predictions who estimated BitCoin at $15,000 in November. As a result, he also divided modern crypto users into two groups: ones who use and keep them in wallets and ones who try to speculate in this market.
The latest study of the Cambridge Centre for Alternative Finance told that there are 17 million users of cryptocurrency who have completed verification. The first three seasons of 2018 resulted in the huge increase of crypto users with a verified ID has increased twice, up to 35 million.