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Fundstrat Global co-founder Tom Lee’s thoughts on recent Bitcoin fall

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Bitcoin

Tom Lee is a cryptocurrency expert at Fundstrat Global Advisors. He’s made name for himself by correctly predicting all kinds of markets many times over. Earlier this year, Mr. Lee made waves in the cryptosphere when he forecasted Bitcoin’s price to end the year at $25,000.

Not too long ago, Mr. Lee appeared at CNBC’s “Squawk Box” to talk about Bitcoin and other crypto topics and if you missed it, in this article we will give you the gist of it.

The interview opened asking Mr. Lee about Bitcoin. That was unavoidable in the coin’s currently calamitous state and the hash wars with Bitcoin Cash. While the red numbers in the market seem apocalyptic to many, Mr. Lee explained that the outlook is not as bad for several reasons. First of all, Bitcoin is currently more of a commodity than an actual currency, so tragedy will hardly come up of the current low market.

He also explained that crypto has two main players: users and speculators and that users will ultimately dominate the market because there is a new wave of users coming soon in the form of institutions. New regulatory clarity will give institutional investors and users the confidence they’ve lacked so far to adopt Bitcoin (and many other digital assets), come into the game and make the market mature at last.

The interviewer asked Mr. Lee explicitly about Bitcoin’s price by the end of the year, because the current trends make the $25,000 mark seemingly unreachable. Mr. Lee agreed that it doesn’t look so hot right now but he still said that $15,000 by year’s end is reasonable. When he was asked why he said that many different things could make this happen. He wasn’t specific about what could those things be, but he was very confident nevertheless.

Bitcoin ‘seriously’ undervalued

He also explained that Bitcoin is currently seriously undervalued. In his estimation it takes $7,000 USD to mine a full coin so, being a commodity, it won’t stay under that price for much longer because commodities are never sold at prices that are under production costs. On further explanations, he said that as the world grows more digital every day, digital currencies can only become more relevant and accessible. That will make adoption easier, more common, and will rise value for the market.

When the interviewers insisted on describing the sorry state in the cryptosphere, Mr. Lee explained that it’s not as bad as it looks. XRP, for instance, is doing quite well and is quickly becoming a viable alternative for Bitcoin.

To take his point further, he compared how much money is moved around the world using Bitcoin and Paypal. Bitcoin’s piece of that market is superior by a factor of three, even as the price goes down. In his estimation, it will be six times bigger than Paypal in two years, more or less.

Next, he described resistance to digital assets as a normal feature of the generational gap.

During the interview, Mr. Lee was pressed to be a prophet of doom of sorts, but he never lost his ground. Not just around Bitcoin, his arguments on every point were rational, calmed and he offered data when it was needed.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image Courtesy of CNBC.

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3 Reasons Why WISE Token Could Be a Massive Winner in 2021

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WISE token

After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

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The Pros And Cons Of Cryptocurrency

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cryptocurrency

Many facets of our lives are now digitized––money is no exception. 

Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card? 

Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this. 

But what about cryptocurrency?

You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind. 

What’s Cryptocurrency? 

Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level. 

These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.

The Pros: 

Different From Traditional Banking Transactions

One thing people hate about traditional banks is the fact that they can…

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As Global Tensions Grow, Bitcoin Price May Go Higher

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BTC Surged Again as A Safe Haven Asset During Global Tensions

  • India – China Border Conflict

After weeks of squabbling and brawling along their long-disputed border, hundreds of Indian and Chinese soldiers engaged in a deadly clash Monday in a river valley that’s part of the region of Ladakh last week. Troops had massed on both sides of the border in recent months in the northern India region of Ladakh and the southwestern Chinese region of Aksai Chin, causing global concerns of a potential escalation between the two.

  • North and South Korea Clash

Last Tuesday, North Korea destroyed the liaison office it jointly operates with South Korea in the city of Kaesong, just north of the demilitarized zone that separates the two countries. 

North Korea also said it would send troops to now-shuttered joint cooperation sites on its territory, reinstall guard posts and resume military drills at front-line areas in a violation of separate 2018 deals with South Korea. Jeong said South Korea will take “immediate, swift and corresponding” steps to any North Korean provocation.

The tensions grown in Asia and the potential “second wave” of coronavirus in the United States may add more difficulties to the global economic recovery. Thus, Bitcoin, as a safe haven asset, attracts more investors to buy and hold. 

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