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.

Peter Schiff: ‘I Just Lost All the #Bitcoin I Have Ever Owned’

Siamak Masnavi

On Sunday (January 19), famous gold bug and Bitcoin critic Peter Schiff claimed that he had lost access to all of his Bitcoin holdings.

On 4 July 2019, Schiff, who is the CEO of Euro Pacific Capital, a full-service, registered broker/dealer specializing in foreign markets and securities, and founder and Chairman of SchiffGold, a full-service, discount precious metals dealer, and a man who is extremely bullish on gold, bearish on the U.S. dollar, and highly skeptical about Bitcoin, admitted to owning Bitcoin (BTC), Ether (ETH), and Bitcoin Cash (BCH), and said that he was going to HODL his bitcoin no matter what happens to the Bitcoin price.

Earlier today, Schiff took to Twitter to express his anger with Bitcoin after allegedly losing access to the crypto wallet that holds his bitcoin:

Although Schiff thinks that the wallet he was using has "somehow" gotten "corrupted" and that is why his password -- which he is sure of remembering correctly -- is being rejected, not everyone in the crypto community is convinced that is right.

One of those who believes that Schiff has simply forgotten his password is Anthony Pompliano (aka "Pomp"), Co-founder and Partner at Morgan Creek Digital:

After Schiff denied forgetting his password, Pomp, offered to help Schiff recover his bitcoin:

Interestingly, Schiff then claimed that the unfortunate situation with his wallet has not occurred because he incorrectly set up the wallet, and that it was in fact Eric Voorhees, Founder and CEO of ShapeShift, who set it up:

Carlos Acevedo, Director of Sales at Brave, then told Schiff that Bitcoin was not to blame and that if Schiff had used a cold wallet (such as a hardware wallet made by Ledger) or made a note of the recovery phrase, then this situation could have been prevented:

Schiff says that he did not change to a more secure wallet because he wanted all those people who had sent him bitcoin last year to be able to "easily monitor their value".

Although quite a few people are now blaming Voorhees for not making saving the private keys for the wallet he allegedly set up for Schiff, overall, there is not much sympathy for the man who has constantly been attacking Bitcoin over the past few years.

Featured Image Credit: Photo via Pixabay.com