Tom Lee on why Bitcoin [BTC] is the next step for banks

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Tom Lee on why Bitcoin [BTC] is the next step for banks

Post by howlermunkey » Sun Jun 10, 2018 8:55 am

Thomas Lee of Fundstrat spoke about the long-term picture for Bitcoin [BTC] when appeared earlier this week on CNBC. He believes that the regulatory environment is changing.

He began by speaking about exchanges, and why banks should look into becoming exchanges. He stated top exchanges like Coinbase and Binance which have a 2-3% market share make close to a billion dollars, while Goldman Sachs themselves made $8 billion over the past 12 months. Exchanges provide lucrative opportunities for banks to increase their profits and move into the crypto space.

He also stated that there wasn’t as much speculation in the cryptocurrency market as people expected, stating that the ratio between the on-chain and exchange currencies is 4:1. This means that for every 1 coin on the exchange, there are 4 on the chain. Other resources like oil have a much higher ratio such as 40:1, with USD being traded 141:1.

He said:

“Crypto is a digital payment system which is actually widely used.”

He said that around 7 billion payments occur using Bitcoin. He spoke about BitPay Checkout service, which conducts 6% of all Bitcoin payment transactions. It is a Point of Sale mechanism that allows brick-and-mortar establishments to accept cryptocurrency payments. ... tep-banks/

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