Investor Tom Lee on Bitcoin’s Future

Investor Tom Lee suggests that Bitcoin may become the most profitable asset for Wall Street as the US advances towards making BTC a reserve asset.

In a recent interview on The Compound podcast, Lee likened the Strategic Bitcoin Reserve to the US petroleum reserve. He pointed out that for every dollar spent on oil, over $400 is speculated in the markets.

Given the high levels of oil speculation, Lee argues that countries need reserves to manage supply and mitigate volatility.

The Fundstrat head of research believes if oil speculation reaches 400 times its market value, Bitcoin, as a globally adopted reserve asset, could potentially be traded far more, becoming the most profitable product for firms like Goldman Sachs and JPMorgan Chase.

> “Let’s say Bitcoin becomes 10% of people’s net worth and banks start to use it to secure information. On the blockchain, even storing one pixel of a 10 million-page document allows for detection of changes through hashing, making Bitcoin valuable for information security.”

Lee contemplates whether the US would seek to control this blockchain or censor it in some way. With banks like Citadel trading Bitcoin, it could emerge as a highly profitable asset.

In conclusion, if oil is traded at 400 times its market value, Bitcoin might be traded even a thousand times, establishing it as a highly tradable commodity.

Current Bitcoin price: $86,785.

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