Many critics have agreed that the digital asset Bitcoin shouldn’t be used in making payments, as most of the time, it is used for speculation. However, Thomas Lee, who works for Fundstrat, is in disagreement with most of them. He said that, “even the US dollar is at times used to speculate”.
Only 1% of USD Is not Used for Speculation
Castle Island Venture, which is a venture capital firm, interviewed Tom Lee, who is currently the Head of Research and managing partner at Fundstrat Global Advisors. Lee had said on the latest podcast, for On the Bring, that only an insignificant fraction of the US dollar is used up in transacting goods and services. You can listen to the entire 54 minute interview here. Here is the intro for Thomas Lee for those who are not familiar with the bitcoin supporter:
Tom Lee, the Managing Partner and the Head of Research at Fundstrat Global Advisors joins the podcast. He is an accomplished Wall Street strategist with over 25 years of experience in equity research, and has been top ranked by Institutional Investor every year since 1998. Prior to co-founding Fundstrat, he served most recently as J.P. Morgan’s Chief Equity Strategist from 2007 to 2014, and previously as Managing Director at Salomon Smith Barney.
The other dollars are used in speculation for other assets, so it was not fair to discredit Bitcoin that it is only used for prediction. According to Lee’s thinking, the percentage of US dollars used for making payments is only 1%.
Lee added that the main objective of any store of value is to make money from other assets via speculations. Stablecoins like Libra wouldn’t be contented with only one function, which would be to make payments. Some stablecoins could be used as a store of value or to purchase Starbucks, but their main objective is mainly to speculate on other tokens.
Even markets such as bonds, real estate, and stocks are covered by price speculation. Therefore it would be unfair to single out Bitcoin.
Bitcoin has Inbred Worth
Lee disputed claims that cryptocurrency did not have intrinsic value.
The Financial Conduct Authority in the UK had warned investors against Bitcoin, and they claimed it had no inbred value in August. Lee argued that Bitcoin did indeed possess intrinsic value, and it came about from the cost incurred by miners in the production of the digital asset. He added that the digital asset is at its maturing stage and put in use by only a few of its owners.