Investor Tom Lee says that Bitcoin might per chance per chance well discontinue up changing into basically the most profitable product for Wall Road giants as the US goes ahead with making BTC a reserve asset.
In a brand unusual interview on The Compound podcast, Lee compares the Strategic Bitcoin Reserve to the theory of the US petroleum reserve, noting that for every dollar oldschool to amass oil, over $400 is oldschool to invest in the markets.
With so noteworthy oil hypothesis, Lee says countries need oil reserves in advise to manipulate supply and no longer get “whipsawed” by volatility.
The Fundstrat head of analysis says if oil hypothesis is price 400 instances its market cost, BTC, as an world reserve asset adopted by the so much, would doubtless be traded noteworthy extra and might per chance per chance aloof be Goldman Sachs and JPMorgan Scoot’s most profitable product.
“Let’s disclose [Bitcoin] becomes 10% of of us’s secure price and banks inaugurate to exercise it to rep knowledge. Be wide awake on the blockchain, that you would possibly per chance also superb-searching retailer one pixel of a 10 million-web page doc however the hash will detect if you happen to change one pixel, so as that’s why you’re going to exercise the Bitcoin to rep knowledge.
Well, that’s if fact be told treasured but then wouldn’t the US need so as to manipulate this blockchain or exert some capability to censor it by some capability? And once banks inaugurate trading Bitcoin, admire Citadel, this might per chance per chance also doubtlessly be basically the most profitable product for Goldman and JPMorgan…
And if oil is traded 400 instances, Bitcoin might per chance per chance well also be a thousand instances, it’s going to be a vastly tradable commodity.”
At time of writing, Bitcoin is trading at $86,785.
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