Jeremy Allaire, co-founder of crypto finance company Circle, told CNBC in an interview that Bitcoin (BTC) will be worth “a great deal more” than it is now.
When asked about the Bitcoin price in three years, Allaire said that he does not make “significant price predictions,” while adding, “I think it is certainly going to be worth a great deal more that it is today.”
Allaire also stated that while Bitcoin is attractive as a non-state store of value, a slew of other tokens will enter the space, and the bases of their valuations will be diverse. He further explained:
“I do not think it’s a winner-take-all [situation]. We have the phrase ‘the tokenization of everything,’ and we think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”
He also said that the key thing with bitcoin is that it is unique in its security and its scale.
“As an idea that we need a scarce, non-sovereign store of value that individuals can hold in a protected fashion — that’s attractive all around the world.”
‘Tokenization of Everything’ is the Future of Crypto
Circle is a peer-to-peer payments technology company founded in 2013. It received over US$135 million in venture capital from 4 investment rounds from 2013 to 2016. On February 2018 Circle bought Poloniex for 400$ Million.
“I do not think it’s going to be a winner-take-all scenario,”
“We have a phrase: the Tokenization of Everything. We think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”
Allaire was, however, quick to point out that not all the cryptocurrencies in existence today would make it in the long haul. The point being that overcrowded markets are often filled with many competitive forces, making the market a zero-sum game. In short, the death or success of a single cryptocurrency does not always need to affect the success or fall of the others.
Earlier this week, major crypto bull and co-founder of Fundstrat Global Advisors Tom Lee claimed that the fair value of Bitcoin is “significantly” higher than its current price and should be somewhere between $13,800 and $14,800. Moreover, he still thinks that the fair value of Bitcoin could reach $150,000 after it has been more widely adopted.
In his note to clients, Lee, former J.P. Morgan Chief Equity Strategist, said:
“Given we are so close to year-end, we are not providing any updates to near-term price objectives—read this as, we are tired of people asking us about target prices.”
In November, Lee cut his price target from $25,000 to $15,000. A key driver for the revision was bitcoin’s “break-even” point, the level at which mining costs match the trading price.