Bitcoin [BTC], good time to buy? Thomas Lee predicts

Thomas Lee stood by his $25000 prediction for Bitcoin [BTC] on CNBC’s Fast Money. He also spoke about the floor of the price being the mining cost of the coin.

He spoke about where the mining cost will be by the end of the year, saying that the historical cost of the coin has been 2.5x the mining cost. This would “imply a fair value of over $20000”, he said, predicting Bitcoin to reach $25000 by the end of the year.

Lee also spoke about the history of price, quoting an instance where Bitcoin moved from $7000 to $10000 in a few weeks. He went on to say that over a 6 month period, 35% of the time the value of the coin has more than tripled.

Furthermore, he said that Bitcoin is trading below mining cost, with the risk-reward being asymmetrically positive for the coin.

On the challenges faced by the coin, he said:

“Bitcoin is quite volatile and its only got a ten year history…in the entire history it’s always been a good time to buy below mining cost.”

When asked about why the mining cost is a floor for the price, he said that mining represents the flow of the commodity, with incremental cost governing the price. While the coin has mostly traded 1x or above its mining cost, Lee stated that it was always a good time to buy when the coin was trading below 1x of the mining cost.

On a game of ‘Would you rather: Crypto Style’, Lee was given a choice between various coins. The first pair of coins was Bitcoin versus Ethereum [ETH], where he chose Bitcoin. He stated that the investment case for Bitcoin is easier, and that it was a store of value, with Ethereum having “competitors”.

When asked to choose between Bitcoin and Litecoin [LTC], he said that he would “rather own Bitcoin over Litecoin”.

Between the XRP token and Bitcoin Cash [BCH], Lee stated that he would pick the latter, as it has unique features compared to Bitcoin, with there being merits to owning it.

Surprisingly, he chose Bitcoin over US equities, as he thought that the coin can easily do well beyond projected growth for the S&P 500.

User ecossexrp1 said:

“I have saw it all now, would prefer bitcoin cash over XRP! Its not ripple. You would think being in the crypto buisness you would have got it by now. Its Xrp!!!!!!”

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