Bitcoin Could Rally 4,900% And Hit $500k
After a significant fall in the price of Bitcoin now, the most important crypto in the market is struggling to get back on track and head over $10k once again.
At the moment of writing this article, BTC is trading in the green, and the coin is priced at $9,671.20.
Optimistic predictions about Bitcoin’s price continue
The head of research at fundstrat Globa, Advisors Tom Lee said that BTC could rise to $500k in the long run.
During a new interview with NASDAQ, Lee said that he stands by his prediction that BTC will hit $40k before the Dow Jones hits 40,000.
When he was asked if BTC can hit $500k Lee said that he believes there’s a 4,900% increase possible based on the numbers of users who decided to join the network eventually.
“I think in the long term it’s possible because today Bitcoin’s transaction activity is twice that of PayPal, 7x the Discover network. It’s the second-largest transaction network after Visa, and there’s four billion Visa card holders. So if you get to five million Bitcoin users, it’s almost 100x increase in price,” Lee said.
Regarding the timeline for such a significant rise in price, Lee said he’s not sure and doesn’t have a crystal ball.
Bitcoin has a strong use case in the financial system
On the other hand, he made sure to highlight the fact that Bitcoin has a strong use case in the current financial system.
“It’s not like I’m necessarily critical of how financial systems work, but too much money is paid to intermediaries. Today, roughly 6% of all GDP globally is paid to the financial system to manage trust. Bitcoin has been around for 11 years, has never had a single fraudulent activity on its blockchain with $5 trillion of activity,” Lee continued.
He said that BTC works much better compared to the traditional financial system, and the costs are lower.
He pointed out to the fact that you can send a million dollars of BTC between countries for $15, and the same transaction that uses traditional financial systems would cost 5 to 10% of that, which means a lot: $50k to $100k.
Head over to the original article to find out more about what he had to say.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.