Thomas Lee, the co-founder of Fundstrat Global, talked about the cryptocurrency market. At the same time, he talked about specific virtual currencies such as Bitcoin (BTC), Stellar (XLM), and EOS. After his appearance on the YouTube channel CryptoTips, he has also defended the market saying that speculation is relatively low.
Thomas Lee Says Speculation is Relatively Low
He said that when individuals and investors look at they cryptomarket they believe it’s full of speculators. However, this is not in this way.
About it, he commented:
“I think there’s actually a lot of people who really believe there’s something wrong with traditional financial systems, and they’re trying to re-architect it. But what people also overlook is that in traditional markets, whether it’s stocks or bonds or currency or gold or oil, that we can measure how much money is traded on speculative purposes versus actually-used purposes.”
At the same time, he said that every single dollar is traded roughly 240x in different financial markets. For example, the gold speculation-to-use ratio is 40:1, according to an analysis he conducted. However, speculation in the crypto market is relatively low.
According to his research, cryptocurrency speculation compared to real-use is 4:1. Although there are different scams and illicit activities taking place in the market, that does not mean that Bitcoin does not have an important impact on the society.
The cryptocurrency and financial expert says that market performance correlates with crypto activity. For Lee, there are some virtual currencies that have performed especially well during this year. He talked about Stellar Lumens (XLM), EOS, and Dogecoin (DOGE). He explained that they have seen an important increase in daily active users. He has also talked about XRP.
“Year-to-date only three tokens have had an increase in daily active users, what we call daily active addresses, which is Stellar Lumens, EOS and Dogecoin,” Lee mentioned. “And they’re the three best-performing tokens this year.”
About XRP, he said that he did not spend enough time studying it but it seems that it deserves some credit. Lee explains that XRP has a very active community, which is very positive for a project.
Abou Ethereum (ETH), he said that the project experienced FUD from the media. He noted that some issues such as Bitmex futures and delays on its roadmap affected Ethereum’s performance. However, he thinks that Ethereum at $200 dollars is ‘priced in a lot.’
Finally, he has also given his comments about Bitcoin. Lee said that Bitcoin is changing the financial industry as a whole. He put in perspective how much people pay around the world for using financial services. According to him, six and a half per cent of GDP is used to pay to financial institutions to use their services. Individuals spend over a month to pay the financial industry, he says.
Additionally, he noted that Bitcoin has reached its bottom around $6,000 dollars. Some months ago, Lee predicted Bitcoin to reach $22,000 dollars by the year-end. Despite Bitcoin being traded close to $6,450 dollars, he thinks that it is still possible to reach $22,000 dollars before 2019.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.