In line with a recent ‘interview‘ with CNBC, the co-founder of Fundstrat Global Advisors ‘Tom Lee’ has predicted that the price of the leading cryptocurrency Bitcoin [BTC] is expected to reach new highs.
Within his comments, Lee added that bitcoin is turning into the reserve currency of the ‘cryptocurrency‘ ecosystem, and outlined that its presently been ‘priced‘ over the $9,000 USD benchmark in solely 4% of its history. Explaining further, he added:
“I suppose bitcoin is definitely going to take out its all-time incomparable highs again.”
Before his earlier predictions, Lee conjointly outlined that ‘Facebook’s‘ Libra project can be seen as a validation of mainstream interest within the crypto-currency sector. He also declared that he thinks this development “completely destroys this argument that says ‘I believe ‘blockchain‘, not Bitcoin [BTC].” He conjointly expressed his vision that – while he believes libra to be one among the dominant stablecoins – other ‘stablecoins‘ will most possibly survive:
“I don’t assume that are gonna drop in worth as most of them are collateralized, I think the ones that are algorithmically stable just might not have the network effect.”
When asked whether or not the banks will be supporting the libra project within the future, Lee added that the decentralization of finance -while convenient for the payment processors – leads to a negative return for banks:
“One thing to keep in mind: Facebook’s annual revenue per user is about $50 USD […] which might be a little high. However an avg. bank generates around $1,000 USD per user, thus Facebook has a 20x upside to their client model if they begin doing banking services. […] I can see why banks aren’t really very enthusiastic regarding this.”
Earlier today, the head of the U.K. central bank ‘aforesaid‘ that the Facebook’s upcoming libra cryptocurrency project might have genuine use cases if it can adapt to the regulative demands.