On May 23th, Tom Lee, the co-founder of Fundstrat, said to CNBC in a email that the Bitcoin price will reach $25,000 for three reasons.However, before we really look into the reasons, it’s necessary for us to get a glimpse at the current price graph showing the data and how the Bitcoin price change.
According to data from citicoins.com, the current price of Bitcoin stands at $7,449.36, far much lower than the so-called $25,000, and the curve seems rather volatile, with the high stood at more than $9,600, almost hitting the mark of $10,000 and the low at less than $7,500. It also shows a trend that the price curve will change within a lower price range.
Therefore, why does Tom Lee still holds euphoria about a increase in the Bitcoin value under such a dim situation?
Mining Bitcoin still be profitable
As we all known, the mechanism for people to get tokens in Bitcoin system is mining. Miners compete with others users in the world for processing transaction information in a way of competing computing power. To mine Bitcoin, you first need the equipment and then you pay the bill. However, as the difficulty increases exponentially, more advanced equipment is needed and the cost of paying a electricity bill goes higher and higher. Therefore, someone claimed that mining Bitcoin is not that profitable as before.
While according to Tom Lee, the current cost of mining a Bitcoin is about $6000, compared that current price’s $7,449.36. Therefore, miners who participate in processing information could get more than $1400 out of the activity.
Institution is piling in, bring in possible increase in price
News coverage like Goldman Sachs to launch Bitcoin futuresFacebook to get into cryto market
said Tom Lee.