Bitcoin Jumps Back Above $9,000 As Bobby Lee Forecasts “Flippening” Of Gold By 2028
Crytpos have taken a leg higher in recent hours, led by a jump in Litecoin…
With Bitcoin erasing Friday’s plunge, back above $9,000…
But, as CoinTelegraph’s William Suberg reports, Bitcoin is set to go much higher asÂ well-known industry figureÂ Bobby Lee expects it to surpass the market cap ofÂ goldÂ and could ultimately be worth $1 million.
In aÂ series of tweetsÂ on Nov. 10, Lee, who co-founded Chinese cryptocurrency exchange BTCC and now runs a Bitcoin wallet startup, became the latest voice in the expanding debate on Bitcoin versus gold.Â
Lee: BTC market cap to hit $8 trillion
Goldâ€™s market cap is $8 trillion, while Bitcoinâ€™s is just $160 billion. While around fifty times lower at present, Lee thinks a reversal could come as soon as 2028.
â€œI predict the #flippening will happen within 9 years and $BTC will shoot up past USD $500,000,â€� he wrote.Â
Like many, Lee based his argument for Bitcoinâ€™s success on its decreasing supply via block reward halvings. He noted that in the next decade, the amount of Bitcoin released to miners each block will halve three times. Lee added:
â€œBy 20th year, daily new output will just be ~255 BTC â€” yearly inflation of less than 0.5%. More scarce than #gold!â€�Â
Money printing could take BTC to $1 million
His arguments chime with predictions by a well-established model charting the Bitcoin price â€” Stock-to-Flow. The product of social media analyst PlanB, the instrument likewise uses Bitcoinâ€™s new supply versus its existing stock to forecast its future value.Â
As CointelegraphÂ reported, calculations call for a BTC/USD price of just $8,300 until the next halving in May 2020. After that, however, the situation should change rapidly, with $100,000 coming aroundÂ two years later.Â
Lee also joined PlanB in predicting far higher Bitcoin prices in the latter part of the next decade or beyond. While the former thinks a $1 million price tag is possible in the event of global money printing continuing, PlanB noted that money printing could ultimately stop the Stock-to-Flow model from working.
â€œI would be happy if the model holds for 1 or 2 or maybe 3 more halvings. Especially since BTC is measured in $ â€¦ who knows what happens with $ if the FED keeps doing more QE (money printing),â€� heÂ saidÂ in a Twitter exchange late last month.Â
Bitcoiners battle gold believers
The idea of Bitcoin usurping gold as an alternative store of value still has its major detractors. Among the most vocal isÂ Peter Schiff, the gold bug who has become infamous for his social media slighting of both Bitcoin and its proponents.Â
Prior to that, he forecast BTC/USDÂ never reaching $50,000, while gold would pass $5,000.Â
Equally vocal about Bitcoin meanwhile isÂ Max Keiser, the RT host who continues to argue for the cryptocurrencyâ€™s supremacy on mainstream media.Â
Sun, 11/10/2019 – 12:47