just like the FAANG companies, BTC will reach $ 25,000 thanks to the value of its network

Tom Lee, founder of Fundstrat Global Advisors and Wall Street analyst, believes that the value of Bitcoin (BTC) will continue to increase following a logic similar to that of the Silicon Valley technology giants.

In an interview broadcast during CNBC's Street Signs Asia broadcast, Lee said cryptocurrencies are "assets based on network value", and who share this characteristic with the most successful technological stocks.

"Assets based on network value"

Lee issued these statements when asked why Fundstrat had predicted that Bitcoin will reach a value of $ 25,000 by 2022.

Stressing that this figure was set in 2017, and was part of a five-year forecast on the future price of cryptocurrency, Lee is still certain that it is a goal "quite easy to reach":

"Cryptocurrencies are assets based on the value of the network: this means that the more people possess this asset, the greater its value. It is a logarithmic function: doubling the number of owners, you will get a quadruple value.

To get to $ 25,000 you basically need to increase slightly less than four times, which means you need to double the number of Bitcoin owners. "

Fundstrat estimates that around half a million people are currently in possession of Bitcoins, and it will therefore be necessary to reach one million users to reach $ 25,000.

Lee has drawn an analogy with the performances of the FAANG companies (Facebook, Amazon, Apple, Netflix and Google), from their public listing to today:

"70% of their return (from public listing) is due to the global growth of the internet over the same period of time. In other words, it is a logarithmic function of internet growth, and cryptocurrencies work the same way. "

"The Bitcoin chart will become another hockey stick"

Lee finally expressed an extremely positive opinion on the long-term movements of Bitcoin, explaining that we are still at the dawn of the cryptocurrency and over time will become a class of consolidated asset and strongly desired by institutional investors:

"Once this goal is achieved, the Bitcoin chart will become another hockey stick."

Last month, Tom Lee said that Bitcoin will need a lot of time to consolidate summer growth:

"Realistically, Bitcoin needs to consolidate its earnings. At the beginning of the year it made a considerable upward movement."