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Tommy Lee forecasts Bitcoin prices to potentially reach $200,000 and higher by stealing gold’s thunder.
Serial strategist Tommy Lee has added to finance experts predicting sky-high Bitcoin prices of $25,000 or more.
In an interview with Business Insider, Lee, who is already known for his bullish stance on Bitcoin versus Wall Street, repeated common speculation that capturing the power of gold is key.
Five percent of gold’s market cap, his research suggests, would give rise to a “conservative” estimate of $25,000 per coin.
“It's a very — it's actually the most conservative collection of elements to get to the five percent. Because number one, we assume that gold only appreciates essentially a nominal GDP. So there's no inflation,” he told host Sarah Silverstein.
The five percent figure has frequently surfaced from sources throughout the cryptocurrency industry. Lee, however, thinks the potential for considerably higher prices is “easy.”
“The five percent number really reflects the assumption that investors will allocate in their blended portfolio only five percent to alternative currencies,” he continued.
“Today, that allocation is much greater, it's closer to 10 percent or 15 percent in some portfolios. So, at a five percent allocation it would value Bitcoin at $25,000. You could easily get to $100,000, $200,000 numbers.”
Bitcoin prices have retraced slightly this week after a new surge that saw the virtual currency almost hit $6000 for the first time.
In the short term through mid-2018, Lee is comparatively conservative himself, predicting the $6000 mark to remain a ceiling until then.
“...When people talk about Bitcoin’s volatility today, they're forgetting that when we went off the dollar — the gold standard on the dollar, gold’s volatility for four years was about the same as Bitcoin’s volatility today,” he concluded.
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