Analyst of Wall Street: "the bitcoin will fly up to $25 thousand in the next five years"

Tom Li, the high-ranking analyst of Wall Street and the cofounder of Fundstrat, believes that by 2022 the price of bitcoin will reach $25 thousand.

The rate of bitcoin will exceed $6000 to the middle of 2018

Li has explained that to the middle of 2018, the rate of bitcoin will exceed $6000 — on the basis of Metcalf's law.

"If you construct very simple model for bitcoin assessment – "the number of users in a square increased by the average cost of transactions", then it explains the movement of 94% of bitcoins for the last four years" — Li says.

On the Twitter Tom Li has written:

"The bitcoin will fly up to $25 thousand in the next 5 years"

The model used by Li and Fundstrat for the forecast of a short-term price tendency of bitcoin is strictly connected with its network effect. For many years any cryptocurrency in the market, except an efirium, didn't approach market capitalization of bitcoin. Investors, such as Alistair Milne, attributed such strong long-term rise and growth rates of bitcoin to its network effect.

As Milne has noted:

"Bitcoin — reserve currency of the cryptocurrency world. In the last 24 hours more than half a billion dollars (‘not the fiatnykh’) of tokens against BTC have been sold. The market of bitcoin is deeper, than any other about the country. No new token can compete with it".

It has historically developed so that the network effect of bitcoin plays a crucial role in a medium-term and long-term tendency of his growth, apparently from a recent case of Bitcoin Cash. After his start in September some of the largest the mayningovykh of the enterprises and producers of the mayningovy equipment, such as ViaBTC and Antpool Bitmain, during some period of time supported him therefore he became more profitable, than the main bitcoin. However because users and investors remained on an initial blockchain of bitcoin, mayner have inevitably switched to bitcoin, having redistributed the hash power.

Long-term price tendency of bitcoin — $25 thousand by 2022

Li has emphasized in Business Insider interview that the growing understanding of bitcoin as "new gold" will push its value and market capitalization up. He has said that if the bitcoin is able to reach capitalization at the level of 5% of the gold market, then its price, most likely, will reach $25 thousand in the next five years.

"The bitcoin represents storage of value because it is the ciphered database which within seven years was never cracked. It is method to save value. And if personal information — our gold, bitcoin — our digital gold. Therefore we read that the gold market which cost is $9 trillion, most likely, should be considered as the value of other generation. I think that the next generations of young people will read value bitcoin. And if it captures 5% of the market of gold, it will cost at least $25 thousand".

Already now institutional investors, retail dealers and the general consumers in the main markets of bitcoin, such as Japan, the USA and South Korea, have begun to show increase in demand for digital currencies. If demand for bitcoin as on a valuable and safe asset grows and further, then long-term forecasts of such analysts as Tom Li, will become more realistic.