Tom Lee Stays True to Year-End $25,000 Bitcoin Prediction
After Tommy Lee made slight alterations to his year-end prediction of Bitcoin’s price target, several critics labeled his attitude as bearish, stating that the Bitcoin enthusiast was lacking some confidence in his previous prediction.
Bearish or Bullish?
Tommy Lee, big-time Bitcoin bull, spoke about his mistake of stating that Bitcoin could be worth around $20K once the year is over. Bitcoin’s number one supporter previously spoke in an interview, stating that Bitcoin has always been traded for almost three-fold its original mining cost and that the predicted digital coin’s price by year-end should come as no surprise.
After the interview, critics were quick to notice the new prediction by Lee which was at least $5,000 lower than his original prediction of Bitcoin worth more than $25,000. Other critics said that this was Tommy Lee’s way of presenting a bearish attitude towards Bitcoin.
During an interview on CNBC, the Bitcoin bull addressed the circulating matter, saying that Bitcoin will be worth over $20K, more likely around the $22K mark given its reputation for constantly selling at 2.5-3 times its mining price, and repeated that his original prediction of Bitcoin reaching $25,000 this year stood strong.
Lee pointed to the fact that whether Bitcoin jumped to $20K or $25K, the jump itself is still massive, almost two hundred percent from Bitcoin’s worth today. He explained that as Bitcoin mining becomes harder and more expensive, so will the currency’s cost.
Cost of Mining
Since Bitcoin is mined through computers, the amount of power consumed by the mining process is incredibly high, which results in more expensive mining overall. As Lee mentions, many countries are implementing new regulations regarding crypto mining and the cost of electricity, as well as the hardware required to mine, in order to control the consistently growing power consumption.
As of today, the leading cryptocurrency is currently at $6,600 in trading value, a much lower value from its initial high at the beginning of the year which saw the currency almost value at $20K. In May, the coin saw a brief jump to almost $10K before dropping back to its low point.