Bitcoin's Fair Value: $25,000?

Lee: We explain this in our research. It's a very -- it's actually the most conservative collection of elements to get to the 5%. Because number one, we assume that gold only appreciates essentially a nominal GDP. So there's no inflation. And we assume that money supply grows at slower rates than it has historically. And then the 5% number, really reflects the assumption that investors will allocate in their blended portfolio only 5% to alternative currencies. Today, that allocation is much greater, it's closer to 10% or 15% in some portfolios. So, but at a 5% allocation that would value bitcoin at $25,000. You could easily get to $100,000, $200,000 numbers.

... what's interesting is bitcoin is uncorrelated to other asset classes right now, and I think it really speaks to the fact that it's not institutionally held. It's really held by miners, and enthusiasts. Most of them are what they call hodlers. You know, they're not sellers of the coin. So the liquidity of bitcoin is deceptively small. So if you can imagine, you know, there was recently of a very well-known portfolio manager starting at a $500M hedge fund. If he employs typical leverage, he's buying $2.5B of bitcoin. There isn't $2.5B of bitcoin available to purchase. So I think you can easily see a liquidity-based move in bitcoin that's much beyond our target prices...