Now, as for the future valuation, Tom Lee, Managing Partner of Fundstrat, put a $25,000 price target for Bitcoin by 2022 in a note to clients published earlier this year. However, and this is important, this view is predicated on cryptocurrencies displacing gold in portfolios with Bitcoin serving a digital store of value.
Why do cryptos have to displace gold for this to happen? What if some really big investors/institutions (e.g., banks, hedge funds, etc.) get involved and start buying? Tens or hundreds of millions of dollars of direct investment could take us a long way given the limited supply of bitcoins and how much people are hoarding them.