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.
It is already happening with the bitcoin. At this stage bitcoin is new blooming market for the hedge fund and banks. As far hedge funds are concerned most famous are:
* Winklevoss ( this actually helped bitcoin price from 800 dollars to 1300 dollars last year)
* Bitcoin Investment Trust
* Global Advisors GABI fund
* Polychain
etc etc.
Leading investor from hedge fund Bill Miller has 30% investment in the bitcoin. And with the result obtained so far this will result in getting more and more amount from the investment portfolio in the bitcoin over the year. Then there are other investor who will board the train on bitcoin investment. There being no restrictions on the bitcoin trade anything could happen that is drastic rise and drastic drop is bound to happen.