In an interview with CNBC on Wednesday, Wall Street strategist Tom Lee said that Bitcoin is essentially a “digital gold” for millennials, and that cryptocurrency can easily reach the $ 100,000 price range.
Industry website CoinDesk data show that the bitcoin currency on Tuesday exceeded 10,000 US dollars mark Wednesday morning approaching 11,000 US dollars. But seven years ago Bitcoin’s currency was only $ .06, less than $ 1,000 earlier this year.
“Its current valuation is like a small company,” said Tom Lee, “I think the new Millennial will see trust as a substitute for gold over the next 10 years, so Bitcoin is essentially another generation Digital gold. ”
If bitcoin “reaches 5% of the gold market, the currency can reach $ 25,000.” Tom Lee added, “But 5% seems too small to calculate at 10% or 15%, then bitcoin can easily reach the $ 100,000 range.”
Earlier this month, cautious Bitcoin, Tom Lee last week raised its target price for bitcoin in 2018 from $ 6,000 to $ 1.15 million. He said Wednesday that he mistakenly viewed it as a currency early in Bitcoin’s development.
“This put the bitcoin in the wrong frame,” he said.
Bitcoin has gained more than 130% in the past three months, and the cryptocurrency has risen sharply since CME Group and Cboe Options announced the launch of Bitcoin futures.
Earlier this week, Michael Novogratz, a former Fortress hedge fund manager, expects bitcoin to “easily” break the $ 40,000 mark by the end of 2018.