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How to value a bitcoin

2691 ratings | 143390 views
In the first episode of "the bit," FundStrat Global Advisor co-founder Tom Lee explains different methodologies for valuing bitcoin. Lee shares his short-term and long-term bitcoin price targets based on these valuation methods. According to Tom Lee, 94% of the variation in the price of bitcoin is explained using their model employing Metcalfe’s Law. Metcalfe’s law says the value of a network is proportional to the square of the number of users on the network. Based on this model, Lee expects the value of bitcoin to be $6,000 by the middle of 2018. FundStrat uses a different method to come up with its long-term price target. According to Lee it is conservative to estimate that bitcoin and other cryptocurrencies would represent 5% of the money parked in gold. Based on FundStrat’s assumptions this would value bitcoin at $25,000 by 2022. Read more: http://www.businessinsider.com/sai FACEBOOK: https://www.facebook.com/techinsider TWITTER: https://twitter.com/techinsider INSTAGRAM: https://www.instagram.com/tech_insider/
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Text Comments (438)
Bit Act Giving (4 days ago)
$6,300 today
erik newport (18 days ago)
pretty prescient, bitcoin hovering at just above 6k for most of mid-to-late 2018. yes it was 6k back when this video was made in oct 2017 but he's not talking about boom-bust cycles, he's talking about the long term average price increasing.
medionred14 (2 months ago)
funny how it already went up to 20.000 and now mid 2018 it actually is around 6000...
MM X (4 months ago)
he is correct, now BTC is 6K, and now is mid-2018
Zt Cedric (6 months ago)
amazing we are in 2018 and the price currently is still far above $6000 while being down actually 53% of the peak, there is no doubt that Bitcoin can be valued in 7 to 8 digits.
Robyn Linn (6 months ago)
We've generated crypto commissions in Bitcoin with our system. It's a life-changer.
Carla V V (7 months ago)
April 2018 btc = $ 6600 - 7200. I think he knows his work
GG TT (7 months ago)
Donate some btc i cant buy in my country 124exx5mM1kyomz7ZMT6wwoG4qGuQtAaGy
GG TT (7 months ago)
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Luca Toscani (7 months ago)
it got to 19500 $ in december 2017.. lol he actually underestimated it ahaha
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james le (7 months ago)
Should hAve listen to this guy before
Joua Vang (7 months ago)
Fucker keeps smacking his lips after each sentence. Distracting me too much to be able to pay attention.
Bit old but engagement is truth. Tis the Shiz.
deo Jumalon guinsatao (8 months ago)
hi there
John (9 months ago)
whenever i want to buy something with my bitcoin. the amount in bitcoin is always adjusted against the dollar. If in the future you can buy stuff directly with bitcoin i understand that the value of bitcoin should go higher but if its always going to be adjusted against the dollar the price of bitcoins doesnt matter?.
Wilfred Teo (9 months ago)
Sure bitcoin cannot be hacked? https://www.express.co.uk/finance/city/910799/bitcoin-hack-btc-news-crypto-wallet-safety-security-expert-warning-cyber-attack
Mountain Dew (9 months ago)
nooo stick to gold waivers
Julian (9 months ago)
Good video in explaining bitcoin simply
Gold IRA Rollover Guy (9 months ago)
amazing how reality is better than your predictions! Great interview by the way, very interesting!
Sumit Bhardwaj (10 months ago)
This coin is also showing good growth... https://youtu.be/k0tNwF8YARI
tellyaddict3 (10 months ago)
Gold was the first (serious) form of money, it became a store of value, something to hodl. Bitcoin same story, but then digitally and more powerful than gold (as in having revolutionary implications). If we compare cryptos with the California Gold Rush and the Transcontinental Railroad back in the 19th century then Bitcoin is gold and Ethereum is the railroad (all the fortune-seeking ICOs are riding that train, many of them will fail, but the railroad flourishes no matter what). Litecoin/Monero etc are like silver and other precious metals and will also be around for a long time. Next step: Cardano, will be like aviation. And once cryptos become quantum-safe we're in space.
Pierre (10 months ago)
atm , bitcoin has reached 20k already ^^
Hung Fuen Mak (10 months ago)
25000$? There wouldn't be a mining pool big enough or energy efficient enough to handle your transaction in 8 months time. Let alone 5 years. I predict in 6 months time Tom Lee becomes a beggar on the streets of Philadelphia.
Source Intelligentsia (10 months ago)
HODL!
Hanko (10 months ago)
How can bitcoin be compared to gold? Gold can't be manufactured but bitcoin can be duplicated or copied by means of creating infinite other altcoins/cryptocurrencies...so where is the scarcity in bitcoin?
Adam T (10 months ago)
lol. $6000 by 2018. Try $60000
k14pc (10 months ago)
HODL! lol!
PomskyPro Fredal (10 months ago)
Who is here when it hit 19k
Golden Yu (10 months ago)
This guy knows shit and only guessing bitcoin went 19k already and it's only 2017 and it tank 40% did he guess that, nope, only guessing
SUK MIKE HOK l (10 months ago)
this guy is bs ,did he guess it would tank 40%
HellyFunVloggers (10 months ago)
Already 24K and it’s 2017 ahha
Geocinia Tolosa (10 months ago)
3B2kjUNc8Vp7zFJkhbMjUkTkchi2k7gp4A please send me bitcoin 😜
Escapade (10 months ago)
It is overvalued and useless
Jorge Orpinel (10 months ago)
5 years? Try 5 months or less.
Rezzy (10 months ago)
“In five years bitcoin might hit 25k” I’m pretty sure it’s going to hit it in like 2 weeks.
CallMeJoeJoe (10 months ago)
It's already at 19k!
J Easter (7 months ago)
6k lol good luck kid lol
Golden Yu (10 months ago)
Rossclairborne those people said 400k he never mention which currency
Sean nt (10 months ago)
and now it crashed
SUK MIKE HOK l (10 months ago)
lol was at 11k
Eye Vyke (10 months ago)
Not anymore!
Customer Service (10 months ago)
Loooooolllll hey fool bitcoin is 17k now and make money cash out n bounce.
Customer Service (10 months ago)
This guys looks sneaky and fuckhead
Oneplus 3T (10 months ago)
Touched $17k lol by December 😂
abshir khalif (11 months ago)
smart and simple person
MiG Mendoza (11 months ago)
Well - the math they are using was totally bunk.
Anupam Sah (11 months ago)
This person is amazing.
Owie Owie (11 months ago)
Haha........
EdizzleBru ! (11 months ago)
Isn’t it valued at 18000 already
Frank Hernandez (11 months ago)
I'm from the future, bitcoin is worth 16k in december 2017
Arvind S (11 months ago)
6000 in 2018??!! huh 15,000 in december!!! smh
Arvind S it was 6200 2days ago
Shane Skull (11 months ago)
I guess five years was VERY conservative now that it touched upon 20k less than two months after this video was made.
David Addison (11 months ago)
This is the same guy who said in 2011 S&P 500 was going 2,000+ by 2015. He was basically laughed off the screen. Who's laughing now?
snois2 (11 months ago)
4:22 LMAO I laughed at that part
Faplord (11 months ago)
bitcoin was at 16,6k today
IK4F _ (11 months ago)
The bitcoin is going for more then 11k now. Wow incredible how much attention it attracted and now giving the rise for a bitcoin.
Luckruwan Hetti (11 months ago)
$6,000 in mid-2018?? Its $15k and it is still on December 2017
C R (11 months ago)
PowerLedger (POWR) Amazing Project!!! Research this one!!! 10x to 20x potential!!!! https://www.binance.com/trade.html?symbol=POWR_BTC
Sean Burke (11 months ago)
I am not an expert economist, but this Metcalf's Law explanation confuses me. How could it be possible to determine the number of users? The number of addresses does not reflect the number of users. Exchanges like Coinbase hold hundreds of thousands of private keys. Attempting to identify the number of users seems impossible to me and the margin for error has to be enormous.
Mihir Arsekar (11 months ago)
$11,700
Vile Nation Gaming (11 months ago)
Woah... he was way off huh lol
Bundaberg Bear (11 months ago)
Yeah what shiitake form of valuation. Bitcoin is compared with gold? Are you kidding me?
Robert Almeida (11 months ago)
Well its December and it's at $12K.
BIG COW (11 months ago)
Its $11,000 in december
Tron vron (11 months ago)
Easiest way to get Bitcoin-https://youtu.be/KIX9fqIleEo
flik221 (11 months ago)
its dec 2, 2017 and we are over 11k. :)
Crypto Thought (11 months ago)
25K in 5 years???? 5 MONTHS.
Brandon Dith-Berry (11 months ago)
People are wasting their time with this while people are starving and dying and we could be using our time, money, and productivity to actually help people.
Tmike Sierra (11 months ago)
Brandon Dith-Berry And when those people procreate more starving babies because society saved them from their poor decision making we what? Rinse, wash, repeat? I remember watching documentaries 30 + years ago about starving populations in places where the geography is not conducive to sustaining human life. Now three decades later the children of those children are having children in a geographic location that cannot support life. How something this obvious can escape the rational component of most humans brains is beyond me; even animals lacking higher cognitive function slow or stop procreation in direct proportion to the availability of geographic resources. The hard truth is plain to see, just difficult to accept, and all the money and tears do not change reality as much as our sensitive heart wish they could.
Hw (11 months ago)
It's over 11 k.......
Anthony W (11 months ago)
HAHAHAHAHAHA when bitcoin just passed 10k and its not even 2018 yet
Michael Li (11 months ago)
It's almost 10k and it's 28th Nov 2017!!
Michael Li (11 months ago)
More like in 2-3 years!!
Martin J Falls (11 months ago)
it was rought 4-5k at this point, this guy has no idea at all.
Andrew Freeman (11 months ago)
It will hit 25K in less than 2 years...Buy now while you still can..
OFFICIAL LEAF (11 months ago)
Tomorrow BitCoin will hit 10,000 the revolution is happening!!!!
Asbjørn Lund Dahl (11 months ago)
Still 2017 and it's around 9700$... I would say 25000$ in mid 2018...
Heidi HOW TO (11 months ago)
9500 BTCUSD at the moment
Zander bam (11 months ago)
Call them HODLERS!!! lol you're the best.
Sam Vanderburg (11 months ago)
Well, Tom Lee, you missed it. It reached $9500 today, 26 Nov 2017, and is still rising. I think you did not anticipate the tremendous leap in the number of users when looking at Metcalfe's Law.
Ray Finkle (11 months ago)
6000 by mid-2018 eh? Tom Lee's cool, but his evaluation method just took a shot to the nuts. It's on pace to double what he said. Now I'm more inclined to believe his 25,000 figure will be closer to 50,000. Metcalf's Law x 2 is the new model.
Johnny Lingo (11 months ago)
this is a very powerful/important interview. its my second time watching it.  if you are watching it and not yet invested, consider it a sign to start getting involved.  remember you can invest as little as $100 into BTC, and dollar cost average in.  a year from now come back and thank me.  don't over think it and think you missed out on the bitcoin train.  10k will be cheap in 4 months
Casey Jones (11 months ago)
Almost halfway there, $9400 on November 2017
OJ (11 months ago)
here at 9k...
Michael Heier (11 months ago)
$6000 BY mid 2018 is SUPER BEARISH!
Paul Cysneros (11 months ago)
Michael Heier 6k? Lol.... It past 11k already end of 2018 we will hit 40k
Zt Cedric (11 months ago)
6000 by mid 2018? well well 2017 has not even ended and we are over 9000!!
Geek Sauce (11 months ago)
More like $25k in the next 6 months.
Jaime Warlock (11 months ago)
We use to talk about Metcalfe's Law back in 2013 on Bitcointalk as a means to predict the future value Bitcoin. The whole hypothesis fell apart during 2014 and it was thrown out. BETI (Bitcoin Exponential Trend Index) seems to be a much system and has much more predictive power. Using it, we expect Bitcoin to reach around $10k by the end of 2017, around $20k in early 2018, then a huge crash. Should recover within a year after that and start a new bubble. Over $100k before 2020. Read Chaos by James Gleick for an understanding of the chaotic growth pattern.
Andrew Lee (11 months ago)
well, metcalfe's law has just had its fucking arse kicked
Alex Virdee (11 months ago)
11/26/17 9:52 AM EST trading at $9,043.55
James T. (11 months ago)
He was doing good until he called bitcoin a very well-designed database.
kev Waltham (11 months ago)
You was wrong
howo357 (11 months ago)
metcalfe's law interesting.
MainAccount (11 months ago)
Get free from Central Powers control by using decentralized currency. The future economy will be totally digital and decentralized. Bitcoin is a worldwide-distributed decentralized peer-to-peer censorship-resistant trustless and permissionless deflationary system/currency (see Blockchain technology) backed by mathematics, open source code, cryptography and the most powerful and secure decentralized computational network on the planet, orders of magnitude more powerful than google and government combined. There is a limit of 21 million bitcoins (divisible in smaller units). "Backed by Government" money is not backed by anything and is infinitely printed at will by Central Banks. Bitcoin is limited and decentralized. Receive and transfer money, from cents (micropayments) to thousands: * Cheap regardless of amount $$$ sent (Soon again with Segwit+LN) * Borderless (no country can stop it from going in/out or confiscate) * Trustless (nobody needs to trust anybody for it to work) * Privacy (no need to expose personal information) * Securely (encrypted cryptographically) * Permissionless (no approval from central powers needed) * Almost Instant (from seconds to a few minutes) * Open source (auditable by anybody) * Worldwide distributed (from anywhere to anywhere on the planet) * Censorship resistant (no government can stop its use) * Peer-to-peer (no intermediaries with a cut) * Portable (easier to carry/move than cash, gold and silver) * Public ledger (transparent, seen by everybody) * Scalable (each bitcoin is divisible down to 8 decimals) * Decentralized (distributed with no single point of failure) * Deflationary (its supply goes down with time until reaching 21 million ever) * Immutable global registry (can’t be altered/hacked by nobody) * No chargebacks-No fraud ('push' vs' 'pull' transactions). And that’s just as currency, Bitcoin has many more uses and applications. For more info go to r/bitcoin on Reddit.
Mary Williams (11 months ago)
For the people who still don't understand bitcoin, please do your research. You will never have an opportunity like this ever. Keep accumulating gold, silver and bitcoin and you and your family will be sitting pretty for life. The future economy will be digital and decentralised. Besides financial health, we need to invest also in mental, emotional and spiritual health, but once covered your physical needs, everything else becomes much easier.Get some bitcoin now, it will continue to increase in value for decades to come, since it's limited and ever more useful for more and more applications. Here is a start: "Introduction to Bitcoin" - Andreas Antonopoulos https://www.youtube.com/watch?v=qkxdys-Ek9U Andreas own YT channel: https://www.youtube.com/user/aantonop/playlists Also, visit https://www.reddit.com/r/Bitcoin/ to learn more and be informed.
Hung Fuen Mak (10 months ago)
By all means Mary, if you like Bitcoin so much, buy it and hold it. I just wanted to say that in 8 months time(or less), Bitcoin blockchain is going to be so large and difficult, that the miners will just dump their coins and leaving you high and dry without means to complete a transaction though it's blockchain. Do you really understand what you are getting yourself into??
Joshua Bono (11 months ago)
So I wanna know if people say gold isn't currency. Then how is bitcoin
MD Rejaul karim (11 months ago)
8200$ now
billy williams (11 months ago)
Peace, love ur videos keep up the good work. Do you believe the governments intervention will hurt the long term potential of crypto?1M8AezdYJx1X5RnKdoXSwho1DkPeQxsgak
Sam Vanderburg (11 months ago)
Wow! And I have learned how to make my bitcoin return grow besides its value! 1% daily! This is going crazy good!
bazilian0 (11 months ago)
"We think Bitcoin will reach $6,000 by mid 2018." Doh $ 8,286.73 as of 2017-11-20. 10k by Dec 2017 ?? 100k by Dec 2018 ??
Xaiiden (11 months ago)
bitcoin will be worth more than 25,000 at 4% worldwide adoption m2 money supply flows into crypto market . 125,000 , maybe 175,000
A Bogey (11 months ago)
Hey! this is my Bitcoin wallet address: 1MgPfLXnfppXwqGQxsSHXtB9eyNYR18BAW donate
Tanisha Adjo (11 months ago)
Wow
Mike Haydon (11 months ago)
Bubbles, bubbles everywhere
Okinamba (11 months ago)
Closing in on 8000 before 2018
katabok (11 months ago)
absolutely fantastic

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