Bobby Lee: Bitcoin price in USD 500K “flipping” to gold will come in 2028
Bitcoin (BTC) will exceed the capitalization of the gold market and, ultimately, could be worth $ 1 million, according to Bobby Lee, a well-known industry figure.
In a series of tweets on November 10, Lee, who co-founded the Chinese cryptocurrency exchange, BTCC, and now runs a Bitcoin wallet startup, became the last voice in the growing debate over Bitcoin against gold.
Read: BTC’s market capitalization will reach USD 8 billion
The market capitalization of gold is USD 8 billion, while that of Bitcoin is only USD 160,000 million. While it is currently about fifty times smaller, Lee thinks a reversal could occur as early as 2028.
“I predict that #flippening will occur in 9 years and $ BTC will skyrocket beyond USD 500,000,” he wrote.
Like many, Lee based his argument for Bitcoin’s success on lowering its offer through halving block rewards. He noted that in the next decade, the amount of Bitcoin released to miners in each block will be halved three times. Lee added: “By the year 20, the new daily production will be ~ 255 BTC – an annual inflation of less than 0.5%. More scarce than the #oro!”
Printing money could lead BTC to a million dollars
Their arguments match the predictions of a well-established model that traces the price of Bitcoin – Stock-to-Flow. Product of the social media analyst Plan B, the instrument also uses the new supply of Bitcoin against its existing stock to predict its future value.
As Cointelegraph reported, the calculations point to a BTC / USD price of only USD 8,300 until the next halving in May 2020. After that, however, the situation should change rapidly, with USD 100,000 around two years later.
Lee also joined Plan B to predict much higher Bitcoin prices in the latter part of the next decade or beyond. While the former thinks that a price of $ 1 million is possible in the event that global money printing continues, Plan B noted that money printing could ultimately prevent the Stock-to-Flow model from working.
“I would like the model to hold 1 or 2 or maybe 3 more halvings. Especially since BTC is measured at $ …. who knows what happens to $ if the Fed continues to do more QE (money printing),” he said in a Twitter exchange at the end of last month.
Bitcoiners fight gold believers
Bitcoin’s idea of usurping gold as an alternative value reserve still has its main detractors. Among the most vocal is Peter Schiff, the golden beetle that has become famous for his contempt for Bitcoin and its proponents in social media.
Last week, Schiff argued that China could back up its state-issued digital currency with gold, which was a “bearish” sign for Bitcoin.
Before that, he predicted that the BTC / USD would never reach USD 50,000, while gold would exceed USD 5,000.
Equally vocal about Bitcoin is Max Keizer, the RT presenter who continues to defend the supremacy of cryptocurrency in conventional media.
In an episode of his Keiser Report last week, he said that Bitcoin’s self-financing capability automatically made it more suitable for transactions than gold or fiat currency.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.