Bitcoin could easily climb to $100,000 because millennials consider it as “digital gold,” according to a Wall Street Strategist. The cryptocurrency reached more than $10,000 on Tuesday.
During an interview with CNBC on Wednesday, Tom Lee, the co-founder of Fundstrat Global Advisors said he made a mistake treating Bitcoin as a proximate currency.
According to him, investors must think of Bitcoin as a technology that it very important to the financial system. He added, “Today, the easiest way to think of it is as a substitute for gold.”
Additionally, Lee said the cryptocurrency at its current value of around $10,000 is solving a problem in the digital economy. That problem is “digital distrust.”
Bitcoin is gold for the next generation of millennials
Furthermore, Lee thinks that over the next ten years, the new generation of millennials will see it as a replacement for gold. He said, “Bitcoin is essentially gold for another generation.”
Moreover, he suggested that Bitcoin could easily reach the $100,000 range if it captures “5% of just the gold market,” which is $25,000.” He emphasized that “5% seems like an awfully small number.” He then assumed the possibility for the cryptocurrency to obtain 10% or 15% of the gold market, which is about $100,000.
Over the past three months, Bitcoin’s value increased more than 130%. The recent announcement of CME Group and Cboe Options to launch futures contract for the cryptocurrency contributed to its strong performance.
Bitcoin could reach $40,000 next year
On Monday, Michael Novograts, the former hedge fund manager of Fortress Investment Group, offered a bullish forecast on Bitcoin. He believed that the digital currency will touch the $40,000 level by the end of 2018
He told CNBC, “There’s a big wave of money coming, not just here but all around the world.” The huge demand from Asia is also pushing the cryptocurrency higher.