Tom Lee, the Managing Partner and the Head of Research at Fundstrat Global advisors took part in the CNBC Fast Money and broke down the misconceptions of many Bitcoin bears. With Google searches about Bitcoin falling down by 75% and the trading volume racing down to 78k, the value of the Bitcoin is stuck and still not spiked up to $10k. With these facts, all clear and not favorable, Tom Lee points out how they are wrong.
He addresses the fallacy about Google searches by stating that they are not leading indicators of Bitcoin and they are mere signaling indicators.
As far as the trading volume is considered, it has dropped down to 80% in the month of December as it was a parabolic blowoff for Bitcoin that year. Besides that, he also added that the trading volumes were 40% higher than the mid-year volumes as compared to last year.
Regarding the price, he states that Bitcoin has some technical issues with busting charts and all it needs to go on top of the hill is just ten days and this ten days could also hopefully be at the end of this year.
When he was questioned if Bitcoin is underperforming, to which, he says that Bitcoin and other coins are correlated but when we look at the ICOs, the demand of Bitcoin is close to 10 billion dollars, which is double of what the ICOs raised last year.
While discussing the newly appointed SEC Czar and the regulations that are going to be implemented, Tom seems to be very confident about the Bitcoin prices. He believes that Bitcoin does not have the risk of being regulated out of the existence because it is performing well outside the U.S market.
“It is a great store of value and it works really well in terms of digital transactions. It is a great example of security.”
He also noted that in the past 10 years not even a single person has entered a fraudulent entry on the blockchain, considering the trillions of dollars which have already been transacted on-chain.
He also noted that the cost involved in mining has also increased from $1.0 to $6,000 indicating that as the time passes and based on several factors, the mining fee increases.
A Twitterati named dj Thistle commented:
“mining cost is more like 3-4K based on electricity costs of the main miners based on the countries they are located in. eg China, Canada, Western US.”
David Yee, a cryptocurrency enthusiast commented:
@MelissaLeeCNBC Maybe Tom has one thing wrong, it is a bubble asset that will never take over from so calle fiat currencies. Made Ms and Bs out of thin air, thought, if you were able to make some. “