During 2018, Bitcoin (BTC) and virtual currencies have experienced a price decrease that affected the whole market. However, Bitcoin’s fundamentals continued to grow. Despite the bear market, Bitcoin achieved interesting growth in many different areas. According to Fundstrat’s Thomas Lee, Bitcoin will experience 9 incremental improvements in the network.
Thomas Lee Positive About Bitcoin’s Future
In a recent tweet written by Thomas Lee, the co-founder of Fundstrat Global, he says that they see 9 incremental improvements in the landscape that support higher prices. That tweet that he posted is making reference to a report made by the company he co-founded.
CRYPTO: we see 9 incremental improvements in the landscape that ultimately support higher prices.
See below… pic.twitter.com/7DSrfVjkoi
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) February 8, 2019
According to Mr. Lee, cryptocurrency prospects could move from “negative” to decidedly “positive.” The report shows that the U.S. dollar will be weakening in the next months. This could also help Bitcoin to experience a trend reversal. Additionally, they expect emerging market equities to outperform American investment tools.
The introduction of the research made by Fundstrat says that virtual currencies and blockchain technology are at a very early stage of the adoption curve. That means that the primary driver of growth in the future will be related to adoption and new use cases.
The report reads as follows:
“Many of the headwinds of 2018 are turning into tailwinds. By any measure, blockchain/ crypto-currencies adoption curve is early, whether measured in wallets, or size of market, and therefore the primary driver of growth will be new adoption (driving network value) and improving on use cases (utility value).”
At the same time, Fundstrat believes that there will be institutional investors that will enter the market. There are several institutional platforms being developed by companies in the space. This is going to help traditional investors invest in virtual currencies.
Jameson Lopp, the Chief Technology Officer (CTO) at Casa, wrote an article in which he shows how Bitcoin fundamentals grew during 2018. For example, Segregated Witness (SegWit) adoption reached 40% of the market. Meanwhile, the Lightning Network (LN) has also been growing during the last year. Now, the LN has a capacity of 656 BTC ($2.39 million), 6,098 nodes and 24,560 channels.
In the future, Bitcoin and other virtual currencies could start to register better fundamentals. This would help these assets to start growing once again. Currently, each Bitcoin can be purchased for $3,650 and it has a market capitalization of $12.57 billion.
