© Reuters
By Laura Sanchez
Investing.com – When Tom Lee, founder of Fundstrat, released his first report on the cryptocurrency five years ago, he predicted that by 2022 the cryptocurrency could be worth between $15,000 and $50,000, recalls CNBC.
Currently, crypto is in the upper middle of this range, and Lee remains optimistic about the future of bitcoin and the cryptocurrency industry in general, especially amid rising interest rates.
“It looks like interest rates can reverse nearly 30 years of declines,” he tells CNBC. Tech stocks and other risky growth assets have been hit by rising rates this year and have continued to fall amid investor anxiety over the US Federal Reserve’s rate hike plans.
“The question we ask ourselves is, ‘Where is $60 trillion going for yield?’, notes Lee, who calculates that amount as a possible amount of speculation in the US market. “The obvious thing is that ‘it will go into equities like the FAANGs, but I think it’s more likely that a lot of the speculative capital originally going into equities could go into cryptocurrencies,’ he says.
While there is plenty of room to experiment, test, learn, and possibly fail when it comes to NFT, metaverse, and other new use cases for cryptocurrencies, maintaining the security of the Bitcoin network is essential, acknowledges Lee.
“The biggest drawback of cryptocurrencies would be an exposed vulnerability in bitcoin, as it is the most important blockchain and the one with the most stored value,” he concludes.
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