BTCC CEO Bobby Lee Sees Bitcoin Surpass $60,000 by 2020

Francisco Memoria
  • BTCC CEO Bobby Lee has recently made a bullish case for bitcoin, arguing it will reach $60,000 by 2020.
  • Lee revealed he believes the mining industry will kerp growing, and will in turn help BTC surge.

Bobby Lee, the co-founder of BTCC and the brother of Litecoin creator Charlie Lee, has recently made a bullish case for bitcoin, the flagship cryptocurrency, as he sees its price surpass $60,000 by 2020 after the block reward halving.

Through various tweets the entrepreneur revealed he believes that as BTC’s price hits $60,000, its total circulation value will be of over $1 trillion which will in turn see its price become more stable thanks to higher global liquidity.

His prediction seemingly implies breaking the $1 trillion mental barrier will help the cryptocurrency surge to new highs well above $60,000, as most institutional investors will then be investing in the cryptocurrency thanks to its liquidity.

Lee’s initial prediction wasn’t well received on the microblogging website as various users pointed to flaws in his theory. Some argued, for example, the cryptocurrency’s price is determined by supply and demand, not its network’s effects.

Responding to the critics, Lee stated:

#Mining & #BlockReward explains why #Bitcoin prices will go up: When I started in 2011, daily global output (new BTC x price) was at $36,000. In 2015, this went to $1.8m. Today, we are at $12m. It means that globally, hashpower keeps going up, using up to $12m electricity costs.

Bobby Lee

Using up this much electricity, he added, isn’t a downside as the cryptocurrency uses a proof-of-work (PoW) consensus algorithm, which helps ensure its decentralization, which means it’s even safer with the added hashpower.

The entrepreneur went on to add that after the next block reward halving in the spring of 2020, bitcoin’s output will drop to 900 BTC/day. If the network’s hashpower keeps rising, electricity costs could reach $54 million per day, he said, leading BTC to $60,000.

He then compared his case to that of gold mining. In 2017, Lee said, 3,150 tons of gold were mined, meaning its daily output was of 8,630 kilograms. At today’s price that equals $335 million of gold per day. The gold mining industry, he asserted, is spending less than that every day.

Further responding to critics who claimed BTC would never surpass $10,000 again, Lee invited them to bet on it and to check back with him in three years. Notably Tom Lee, a well-known bitcoin bull and the founder of Fundstrat Global Advisors, has also recently made a bullish case for the cryptocurrency.

As CryptoGlobe covered, Tom Lee argued a relatively unknown correlation between BTC and emerging markets may see bitcoin end the year “explosively higher.” He maintained his $25,000 by the end of the year price prediction.

At press time bitcoin is trading at $6,700 after falling 0,8% in the last 24-hour period. BTC has seemingly been rising since August 11, when it slipped below the $6,000 resistance.

Number of Bitcoin Addresses Holding 1 BTC or More Hits New All-Time High Near 800,000

Francisco Memoria

The number of Bitcoin addresses with a balance of at least 1 BTC has hit a new all-time high, as data from the cryptocurrency’s blockchain shows nearly 800,000 addresses have said balance.

According to blockchain monitoring platform Glassnode, over 797,000 bitcoin addresses currently have a whole bitcoin in them. Its data shows that in late 2017, when the flagship cryptocurrency’s price hit a new all-time high close to $20,000, there were about 720,0’00 BTC addresses with a whole bitcoin in them.

As the cryptocurrency’s price crashed, holders seemingly moved their funds. A low of 690,000 addresses holding 1 BTC was seen later in 2018, before the number started growing again to hit a new all-time high this month.

Bitcoin wallets with over 1 BTCSource: Glassnode

In early 2017, little over 500,000 addresses had a whole bitcoin in them. The data appears to show bitcoin users are accumulating over time, seemingly unbothered by the volatility in the market, that saw BTC’s price drop from a $10,000 high this year to less than $4,000 earlier this month, before recovering back to $6,300.

It’s worth noting that one bitcoin address doesn’t necessarily mean one user. On the bitcoin blockchain one single user can create thousands of addresses, with some users creating a new address for every transaction to help maintain their anonymity.

Bitcoin’s use in commerce has also reportedly been growing, as Coinbase Commerce, the retailer payment portal of San Francisco-based cryptocurrency exchange Coinbase, has processed over $200 million worth of cryptocurrency transactions. Data from Glassnode further shows users have been withdrawing funds from cryptocurrency exchanges, presumably to hold until after the halving event, expected in May.

The event is seen as bullish by some, as other halving events saw BTC’s price surge as demand kept on rising while the supply decreased. Jihan Wu, co-founder of cryptocurrency mining hardware manufacturer Bitmain, has revealed he believes a bull run may not immediately follow the halving.

Users may also be withdrawing from exchanges as bitcoin’s features are standing out to investors at a time in which the COVID-19 pandemic has put the gold market under an unprecedented stress test.

Featured image via Unsplash.