Bitcoin $55,000? Fundstrats Tom Lee, one of the biggest equity bears among the major Wall Street strategists, says its possible, but not necessarily for the reasons many bitcoin bulls have suggested. <\/p>\n
One of the drivers is crypto-currencies are cannibalizing demand for gold GCQ7, +0.01% Lee wrote in a report. Based on our model, we estimate that bitcoins value per unit could be $20,000 to $55,000 by 2022 hence, investors need to identify strategies to leverage this potential rise in crypto-currencies. <\/p>\n
Thats a major jump from the $2,530 level that bitcoin BTCUSD, -0.03% fetched recently. Of course, this would be on top of whats already been an impressive stretch, with the price more than doubling since the start of the year. <\/p>\n
Lee predicts investors will look to bitcoin as a gold substitute, and the fact that the amount of available bitcoin is reaching its limit makes this supply\/demand story even more compelling for those looking to turn profits in the crypto market. <\/p>\n
Bitcoin supply will grow even slower than gold, Lee said. Hence, the scarcity of bitcoin is becoming increasingly attractive relative to gold. <\/p>\n
Another driver could come from central banks, which he expects will consider buying bitcoin if the total market cap hits $500 billion. <\/p>\n
This is a game changer, enhancing the legitimacy of the currency and likely accelerating the substitution for gold, Lee wrote. <\/p>\n
The trick is that there arent very many ways to play bitcoin, other than via direct investment or the bitcoin ETF GBTC, -2.10% he said, adding that we will identify other opportunities in the future. <\/p>\n
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\nBitcoin the new gold? Yes, says one Wall Street strategist ...<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"