Bitcoin price will explode like Tesla share – Tom Lee
Tom Lee, co-founder of the investment Fund occurred, said today that the investors, when Bitcoin is large enough, as in the case of the Tesla shares in the case into the plows and the price of Bitcoin in the height drives.
In his speech at the Coingeek conference 2020, he realized, first, that the crypto market is still tiny.
The share of crypto to the traditional cash and cash equivalents is 0.1%. He is much smaller than people know
he said, and added:
Until crypto becomes larger, it is largely a retail market. What happens when the institutions start to buy crypto? Now, the FOMO is to start its work.
This to substantiate, he pointed to the Tesla shares, which have risen recently within a few months, from 450 to 991 dollars and thus the market capitalization of Bitcoin briefly surpassed. He noted that most institutions viewed the shares as dead money, to rise until they started.
We have shown that the majority of purchases for Tesla of Russell 1,000 of Fund managers were made, ignored the share and all of a sudden a commitment needed
Lee said.
Within four months, the institutions of a weighted Tesla went to a market risk, 0.7% of Tesla is exposure, and added a market capitalization of $ 140 billion. On the day that the institutions decide that you want to represent the market weighting as crypto, you’ll see the same type of parabolic motion, almost in an instant,
he describes further.
The key market of Bitcoin is the US
Crypto is a global phenomenon, and the Bitcoin Mining is concentrated largely in China, although a lot of development in the United States is taking place and the financing – in particular, the ICOs – typically held outside of the United States. But Lee argued that the United States is the number one market on the Bitcoin will take off.
The USA is 98 trillion, a third of the total money in the world is held in the United States. 51 trillion dollars is accounted for by China and Japan, $ 24. These are the three most important countries, if you think about the Asset Allocation. Over 60% of the money
he explained.
And the keys are the Millennials. He said that people over the age of 60 years, keep, today, about 76% of the money in the United States, the 76 trillion Dollar value, but that in the next 20 years, 68 trillion of this wealth to the Millennials will go.
We have to Fund a lot of demo joined done some graphical work to show that the Millennials are the only real drivers of the US economy in the next 20 years and that they will inherit the assets, the equivalent of China and Japan.
Millennials are much more pro-crypto as traditional investors. This process of inheritance will also push the crypto adoption forward
Lee’s last Argument for Bitcoin is that it has the potential to disrupt the current financial system. He pointed out that the current System is overly expensive and that Bitcoin could offer a cheaper Alternative.
On the basis of data of the OECD, the banking sector recorded 6% of all activities in the economy. This means that for every 1 Dollar you make $ 0.06 in the banking industry is paid in order to enable this transaction. This means that the average Person paid for 3.5 weeks per year, almost a month of your salary, for the right to use the financial system. And in the US amounts to about $ 1,000 per year.
His prognosis, however, may not necessarily received:
The future is uncertain,
he said, and explained that it was important to be in the right place, but it is not always easy to know which Coins are the right ones, in the one should invest. But he stressed that there is still time to be optimistic.
