Finally Tom Lee Talks About The Sluggish Bitcoin Price

Tom Lee

Crypto Scavenger - Tom Lee is a cryptocurrency expert at Fundstrat Global Advisors. He grew to fame after predicting several cryptocurrencies and the results of his predictions can be considered the most accurate so far. Earlier this year, Mr. Lee made a prediction, in which he predicted the price of Bitcoin would rise by $25,000.

Not long ago, Mr. Lee appeared on CNBC's “Squawk Box” to talk about Bitcoin and other crypto topics, The interview opened by asking Mr. Lee. And then Mr. Lee casually explains that bitcoin's prospects aren't as bad as they seem at the moment because he has a few reasons.

First of all, Bitcoin is currently more of a commodity than an actual currency, so the tragedy of the price crash in the current market will not be any lower, He also explained that crypto has two main players: users and speculators and that users will eventually dominate the market because there is a new wave of users coming soon in the form of institutions.

Mr. Lee explicitly to answer about Bitcoin price at the end of this year, since the current trend to make predictions of $25,000 seems unattainable, Mr Lee agrees that it doesn't look that impressive now but he is still confident and says that bitcoin price could go up by as much as $15,000 by the end of this year.

He also explained that Bitcoin is currently undervalued. In his estimation it takes $7,000 USD to mine 1 bitcoin so as a commodity the current price will not stay below for much longer as the commodity is never sold at a price that is below the cost of production.

To take the point further, he compared how much money is moved around the world using Bitcoin and Paypal. Bitcoin's share of the market is outperformed by three factors, even as the price drops. In his estimation, it will be six times bigger than Paypal in two years.