The price of Bitcoin (BTC) may hit the $500,000 region by 2028, Bobby Lee predicts. According to the co-founder of the Chinese cryptocurrency exchange BTCC and now head of a Bitcoin wallet startup, BTC will even surpass the market cap of gold and could be worth $1 million.
Lee is a well known industry figure in the crypto world. His wave of tweets on November 10 echoed a new prediction on the ongoing debate on Bitcoin versus gold. In times when gold’s market cap is $8 trillion and Bitcoin’s market cap is only $160 billion, Bobby Lee predicts that a reversal may direct the Bitcoin news updates in the near future.
“I predict the #flippening will happen within 9 years and $BTC will shoot up past USD $500,000,” he wrote.
Like many others, Lee based his argument for Bitcoin success on the decreasing supply via block reward halvings. He also noted that in the next decade, the amount of Bitcoin released to miners each block will halve by three times.
“By 20th year, daily new output will just be ~255 BTC — yearly inflation of less than 0.5%. More scarce than #gold!,” Lee added.
Bobby Lee predicts a $500k Bitcoin but there is a model chiming his sentiment named the Bitcoin price named stock-to-flow. This product shows that the instrument likewise uses Bitcoin’s new supply versus the existing stock to forecast its future value.
Bobby Lee predicts this right after he joined PlanB and has been working on estimating far higher Bitcoin prices in the latter part of the decade or beyond. However, while Lee thinks that we might see a $1 million Bitcoin, PlanB noted that money printing could ultimately stop the stock-to-flow model from working.
“I would be happy if the model holds for 1 or 2 or maybe 3 more halvings. Especially since BTC is measured in $ … who knows what happens with $ if the FED keeps doing more QE (money printing),” he said in a Twitter exchange late last month.
All in all, the idea of Bitcoin usurping gold and its potential is not new on the markets. Peter Schiff is the gold bug who is most vocal on the other side, previously predicting that China’s state-issued digital currency with gold was “a bearish sign” for Bitcoin and that BTC/USD may never reach $50,000 while gold would pass $5,000.
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