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.

Bitcoin Won't Hit $100,000 in the Next Bull Run, Analysts Predict

Francisco Memoria

Two popular cryptocurrency analysts have weighed in on the price of the flagship cryptocurrency bitcoin and made it clear they believe BTC won’t hit $100,000 in the next bull run.

In an episode of “Trading Bitcoin,” Tone Vays and the pseudonymous trader Filbfilb debated the cryptocurrency’s price performance and the current state of the market. Both analysts agreed that the cryptocurrency has to break specific targets in the near future to keep moving up, with Vays pointing to $10,450 and Filbfilb pointing to $11,500.

CryptoCompare data shows that bitcoin’s price hit a high of $10,480 this month but was quickly rejected off of that zone, dropping to a $9,460 low before it started recovering again. At press time, one bitcoin is trading at $9,700.

bitcoin price chartSource: CryptoCompare

Both analysts also dug into the next bull run Bitcoin is going to go through. They agreed hype surrounding Bitcoin’s halving event, which will cut block rewards in half to 6.25 BTC per block, is fueling price action so far this year.

Bitcoin has been through two halving events so far and its price surged after both, as the supply of new BTC entering the market drops while demand has kept on growing. Some believe the cryptocurrency could hit $100,000 over the halving event, but both Vays and Filbfilb seemed to believe this is an overly bullish prediction.

Instead, Vays said he’s looking for BTC to hit a $45,000 high, while Filbfilb argued the $60,000 mark would be a crucial one. He said:

I think we’re going to struggle to get past $60,000. I think $60,000 is going to be a really, really troublesome level to get across. I’ll certainly be looking to book in some serious profits at that point.

As CryptoGlobe reported various industry personalities have been making notable price predictions over the last few weeks. Max Keiser, who claims to have predicted BTC would hit $100,000 in 2012, changed his prediction to $400,000.

Thomas Lee, co-founder, managing partner, and head of research at the research boutique Fundstrat Global Advisors, claimed in an interview he believes bitcoin could see an almost 100X increase in price if it got to five million users.

Featured image via Unsplash.