Investor Tom Lee believes that Bitcoin has the potential to become the most lucrative asset for Wall Street firms as the United States moves towards designating BTC as a reserve asset.
In a recent interview on The Compound podcast, Lee likens the Strategic Bitcoin Reserve to the US petroleum reserve, highlighting that for each dollar spent on oil, more than $400 is allocated for speculation in the markets.
Due to extensive oil speculation, Lee argues that nations require oil reserves to manage supply and avoid being “whipsawed” by market volatility.
The head of research at Fundstrat suggests that if oil speculation is valued at 400 times its market worth, Bitcoin, when embraced as a world reserve asset by the general populace, could be traded significantly more and might become the most profitable offering for Goldman Sachs and JPMorgan Chase.
“Consider a scenario where [Bitcoin] represents 10% of individuals’ net worth and banks begin utilizing it for securing information. On the blockchain, you can save a single pixel of a 10 million-page document, and the hash will alert you if that one pixel is altered, which is why Bitcoin would be used for securing information.
That’s incredibly valuable, but wouldn’t the US want some control over this blockchain or find a method to censor it? Once financial institutions like Citadel start trading Bitcoin, it will likely become the most profitable asset for Goldman and JPMorgan…
And if oil is traded at a factor of 400, Bitcoin might reach a thousand times; it’s going to be an immensely tradable commodity.”
Currently, Bitcoin is trading at $86,785.
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Disclaimer: The views expressed at The Daily Hodl are not investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be informed that your transfers and trades are at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Note that The Daily Hodl participates in affiliate marketing.
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