Tom Lee at ETC Summit: Bitcoin to Join Facebook, Amazon, Netflix, Google (FANG) Club
Cryptocurrencies To Join The Likes Of Google, Netflix And Amazon
The 2018 Ethereum Classic summit was recently held between 12th September and 13th September in Seoul. The second day of the summit was started off by Tom Lee, a Managing Partner and the Head of Research at Fundstrat Global Advisors. He is also an accomplished Wall Street strategist with over 25 years of experience in equity research.
Lee was part of the discussion panel and talked about the similarities between cryptocurrencies and traditional financial instruments such as bonds and equities. He explained that in both cases the branding has been correct with another similar line of action being the amount of time it took for individuals to understand various details about both commodities.
Lee emphasized the cryptocurrency asset is something that needs to be used, unlike the traditional commodities that needed edges like receipts and bills. He took part in the discussion on the fall of cryptocurrency prices in the past couple of weeks saying that the price variations in cryptos are very different and surprising unlike other markets as there is no fundamental value. It is the price momentum which plays a much bigger role in the crypto world unlike in the traditional financial world.
Developments In Cryptocurrencies
Lee confidently stated that the products and services offered in the cryptocurrency industry are undergoing leaps and bounds of developments that will push it come close to the standards of stocks and bonds in a few years. Retail investors in cryptocurrencies make up about 90-95% of the total investments.
When asked about his theory of connecting the Metcalfe’s law with the cryptocurrency industry, he answered saying Metcalfe’s law states that the effect of a telecommunications network is proportional to the square of the number of connected users of the system. The idea that the value is not a linear function but rather a log function is something that is arbitrary to Bitcoin and its community. The users drive up the value, sometimes in terms of many multiples.
Lee pointed out something that came as a surprise to many. On some trading platforms the trading market cap difference between Ethereum and Ethereum Classic was almost exactly the same as the total market cap difference.
The crypto technology is available for everyone to use but the rise and fall of values can sometimes be confusing giving an example of the high rise of Dogecoin [DOGE] while other coins were crashing. According to him, the recent crash has proven that 2017’s hype was misplaced. He added smart contract needed to be implemented to drive the market and explained that cryptocurrencies will become part of the FANG [Facebook, Amazon, Netflix, Google] club which drives the technological space.