Tom Lee predicted that there would be a Bitcoin rally and it would accrue after tax day has passed and everyone paid there taxes to the IRS, because 25 billion of profits were taken out to the market to pay the IRS reducing the market cap several hundred billion dollars. For every dollar taken out of the market reduces the market cap by up to 25 times. The good news is that the Bitcoin misery index has moved form 18 to 35 seeing improvement since February, but still low. (The bitcoin misery index measures the momentum of bitcoin based on its price and volatility.) See TOM lee long term prediction for Bitcoin below
Tom Lee breaks down the profit and losses over the past 5 years and still thinks Bitcoin is in a bull market in 2018 and to HODL. Tom also advised that Bitcoin will be the first crypto to clear regulatory perspective.
Tom was asked by Melissa Lee if he would put fresh money in to Bitcoin or the S&P 500 he chose Bitcoin he sees Bitcoin.
If you have not seen the upfront summit 2018 by Tom Lee I have provided a link below.
Tom Lee a former employee of JP Morgan Chase and in the last 3 years starting his own research business. This presentation analytical and research regarding bitcoin. It goes in to depth explaining the differences in past generation in history and how they invest there money. He shows a growing number of younger generations don’t trust government and they don’t trust banks because of the Financial crisis and getting bailed out with tax funds and seeing there parents getting kicked out of there homes. This turning point in history is his prediction that in the near future more and more millennials will invest in cryptocurrency and Tom Lee thinks that bitcoin price will rise to hit 10 million a coin.
This was recorded going way back to October 2017 when price was still under $5,000 per coin and predicting Bitcoin will be at $25,000 in five years. At the time of this post Bitcoin price is at around $16,000 ,but also peaked at around $20,000 in December. Tom Lee explains metacalfe law and how the value in Bitcoin will increase over time. The youth today do not see value in gold and more value in cryptocurrency for the future.
Definition: Metcalfe’s law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2). Facebook has value because of users on facebook. Facebook would be a lonely place by your self.