Tom Lee, the managing partner of investment research firm Fundstrat Global Advisors, has highlighted how the involvement of a category of investors could send Bitcoin (BTC) to a six-figure price.
In an interview on CNBC, Lee stated that the involvement of baby boomers (people over the age of 65) may trigger a rally that would send the price of Bitcoin (BTC), the largest cryptocurrency by market cap, to over $200,000.
According to Lee, 76% of all wealth in the United States is controlled by people above the age of 65. He said this group of people, who think Bitcoin is something that people who live in the basement play with, are holding $100 trillion.
The crypto pundit then said if 2% of the $100 trillion held by this group of people is allocated to crypto, one could see at least 10 times of current value.
The Fundstrat Global Advisors’ managing partner added that some of the biggest risks to cryptocurrencies include the development of technology that could compromise classical cryptographic algorithms used to secure the Bitcoin (BTC) network.
Tom Lee noted:
“If I had to say what’s the simplest way for a big step function to happen in crypto, it’s really getting existing generations of investors in the US, not new investors, to actually be willing to allocate to Bitcoin.
“76% of all the wealth in America is controlled by people over age 65. So that’s nearly $100 trillion held by people that think Bitcoin is still kind of a hobby or things that people who live in the basement play with.
“I think regulation could actually unlock a lot of that movement. Just imagine 2% out of $100 trillion allocated to crypto. You could see a five to 10, 15 times increase in total network value…
“I think the biggest downside for crypto will actually be a vulnerability exposed in Bitcoin because it is the most important blockchain and the one with the most value stored on it.
“And there are really two things that could happen. One is if the cost of energy globally fell to zero because if you don’t have to spend money to protect a security network then it means someone can launch a 51% attack.
“And of course, the second is that cryptographic hash becomes exposed. Meaning someone finds a way to actually, whether it’s quantum [computers], to essentially defeat the proof-of-work concept itself. So I’d say those are the biggest downside risk.”
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