Tom Lee, strgestist at Fundstrat and major strategist at Wall Street released recently a report titled “A framework for valuing bitcoin as a substitute for gold.” where he predicted Bitcoin price could hit $55,000 by 2022 according to CNBC.
What gives Bitcoin this virtue is its decentralized nature and its supply limitation (21 Million bitcoins). “Based on this premise, we take a stab at establishing valuation framework for Bitcoin. Based on our model, we estimate that bitcoin’s value per unit could be $20,000 to $55,000 by 2022.” he added.
Tom Lee also sees Bitcoin as a legit substitute to gold: “We believe one of the drivers [of bitcoin] is crypto-currencies are cannibalizing demand for gold,” […] “In our view, this is a game changer, enhancing the legitimacy of the currency and likely accelerating the substitution for gold (by investors),” said Lee in his report.