Fundstrat’s Tom Lees Says Bitcoin is a ‘Generational Change’, Cryptos to Follow Same Path as Internet
Tom Lee, the co-founder and head of research at Foundstrat, gave an inspiring speech at the ChainXChange Conference held in Las Vegas, talking about why he believes that Millennials will help drive massive adoption of Bitcoin and other cryptocurrencies.
Lee started his discussion by comparing the generation forces responsible for triggering mass adoption of smartphones and internet to what’s happening in the cryptocurrency world. He said that:
“To me, wireless and the internet in the ’90s was very much a generational change that people 20 years older than me simply just didn’t understand. And I think that’s the same thing that’s happening with digital assets and blockchain today.”
The Figures And Proof From Surveys
Tom Lee pointed out that Millennials are surpassing Baby Boomers as the largest generation in America, highlighting the powerful impact this could have when it comes to digital asset proliferation. According to a survey conducted from Facebook in 2016, 92% of Millennials don’t trust banks for a number of reasons. Another conducted by First Data revealed some interesting facts, pointing out that 71% of Millennials would rather choose to go to a dentist than a bank.
“Clearly, Millennials hate banks. Why do they hate banks? They hate banks because their parents lost their homes in the financial crisis… Today, 70% of Gen X and 60% of Millennials never visit a bank branch. They do all of their transactions online. So to them, native digital is something they’re very comfortable with,” Lee said.
According to the Foundstrat’s head of research, the statistics combined with the historically low level of trust in governments across the globe are enough reasons that traditional banking and finance industry is ripe for technological disruption. He said that:
“First Data estimates that by 2020 Millennials will control about $7 trillion in financial assets, of which a very small percentage is allocated to digital assets. But here’s just a thought. What if 10% of that goes into native digital assets, into crypto. As you all know, the multiplier for crypto estimated by Kyle Samani at Multicoin Capital is about 20-25 times, which implies almost a $14 trillion increase in the market cap of the crypto space just from US Millennials allocating into crypto.”
Lee On The Current Bear Market
Tom Lee also talked on the current bear market that seems to cripple cryptocurrencies, saying that it’s just a great opportunity for investors to buy in when prices of digital assets are low. He compared it to the landscape following the 2008 stock market crash in the US, saying that it’s typical for such markets. He concluded saying that:
“So I think the bear market has largely run its course in crypto, and it’s been healthy. It’s been resetting capital. It’s resetting investor expectations. But most importantly, the only time you can really make money in a big way is to buy when investors aren’t buying. That’s the real opportunity.”