Tom Lee Says Bitcoin Will Triple In 2018

Let’s face it – no one expected such a daunting start of 2018 for Bitcoin. After climbing to $20,000 in December 2017, Bitcoin has sank to less than $10,000 this January which scratched the surface of a lot of possibilities.

Even though the leading cryptocurrency has inherent volatility which makes it a bit tricky to predict how much time it will be worth at any given time, experts believe that they have the knowledge and experience to predict things around Bitcoin.

Tom Lee, a previous chief equity strategist from JPMorgan Chase, for example, says that Bitcoin’s price could easily double and even triple in 2018. Lee is a co-founder of Fundstrat Global Advisors which is a market strategy firm.

As Lee said, we need to “appreciate how much development and uses cases are being built around Bitcoin and see the value from there”. He also referred to Bitcoin’s characteristic price unpredictability and saw it as a “price discovery process”.

In his own words, Lee stated:

“On a long-term basis, [the easiest way to look at Bitcoin is] as a replacement or a store of value. So as millennials discover and generate income, they’re going to use it as a replacement for gold. If [Bitcoin] gets 5% of the gold market, that’s roughly $50,000.”

Previously, Lee said that millennials seem to offer an easier acceptance and adoption of virtual currencies which will make them a viable investment offer. Lee even point to the previous generations’ gold investments and how Bitcoin is similar to them with the fact that it outperformed gold for two years running.

“Even on a risk-adjusted basis, Bitcoin is going to easily outperform the S&P. If Bitcoin can regain its $20k footing within the first six months of this year, the latter half of 2018 could see even bigger gains.”, Lee was confident.