The world-renowned Bitcoin investor, Thomas Lee, has recently found a way that can be useful for digital currency investors, even when price fluctuations bring their heart rate to near zero.
According to him, despite the 70% decrease in the value of digital currencies since their peak in 2017, this market is still a bullish (profitable) market.
He believes that the price of the king of digital currencies will reach more than $ 25,000 by the end of this year.
According to him, the psychological burden on the millennial generation, which is related to governments and the strange rise to power of institutions in the current era, will make the use of digital currencies more widespread. He cited Asia as one area where the use of digital currencies will increase.
Lee began his career in economics in the late 1990s, entering the world of wireless technology. Few at the time believed in such technologies and their impact on people’s daily lives. It was then that he took over as chairman of JPMurgan in 2017, a position he held until 2014. Lee is known for his outspoken comments about technology on television. His other work includes the creation of Fundstrat Global Advisors in 2016. Lee is in charge of the company’s research department.
Lee explored the bitcoin market at the CMT symposium in the presence of a group of commentators and market experts in New York, presenting some of his work in the form of specialized and concise reviews. The results of the research were announced in the following categories:
Millennial Generation: Includes those born in the 60s to 80s.
Generation X: Includes people born in the 40s and 60s.
The first reason
The explosion of the digital economy
We live in a world where digitization and digitization are happening very fast. Where technology has been a major part of economic growth for the past two decades, and this time it is constantly increasing. According to Lee, the world economy has been around $ 60 trillion over the past decade and now stands at $ 80 trillion. This 50% growth is due to the digital world. Today, about 70% of Generation X and Millennium generation use digital banking.
The second reason
Trust is declining
Such an explosion has caused security problems for individuals and investors. About two billion people have been hacked and hacked into seemingly secure banking networks such as Equifax, Target and Visa. On the other hand, not only is the question of whether user information is held by secure companies, but Pew’s research shows that trust in government has reached its lowest level in 60 years.
Digital currencies seek to solve problems such as lack of trust. In fact, the interesting connection that Lee points out is the growth of bitcoin in countries where people do not have enough trust in governments.
The third reason
Millennium Generation Market
In the digital currency market, turning to such a market is not just following the trend of others, but a wide range of factors are involved in creating such behavior from the millennial generation, which leads to increased investment in digital currencies. These factors are:
Millennial generations account for the largest number of births. Something like 95.8 million births. This generation is a generation with good education. Seventy-two percent of millennials are enrolled in college, and as their education increases, so does their income.
Millennials and Generations X will make a lot of money in the future. Available revenues will face an annual growth rate of 9.1 percent over the next decade, which means an increase of $ 3 trillion to about $ 7.1 trillion. These two generations, and especially the millennial generation, will become the main target of the markets in buying more expensive assets such as houses, cars and computers.
These people will need banking services. 72% of all banking services in the next decade will be for millennials.
The millennial generation will be eager to buy digital currencies. According to Lee’s hypothesis, the purchase of digital currencies takes place at a time when it may cause them to enter into binding contracts. According to a Harris poll, only 4% of millennials have bought digital currencies. Thirty percent of them want to get binding contracts.
They can easily invest in crypto. Software like Robin Hood is already getting a lot of attention. With four million users, this application is one of the leaders in this field. Twenty-five percent of these people are also investors in digital currencies. Of course, it should be noted that the possibility of investing in this area is only one year added to Robin Hood.
The fourth reason
Old gold and now digital currencies
Buy the silent generation of gold, because gold has proven to be a good investment option in the turbulent market of the twentieth century. However, since then, gold has never been able to prove it again. The heirs of those people are now investing their gold for future generations, but this time elsewhere; On the other hand, there is no guarantee that we will value gold as much as the generations before us. The survival of bitcoin since 2008, and its re-support by young people, has led us to realize that there are still people who prefer bitcoin despite other value reserves.
The fifth reason
It is enough to look at Asia. Many technological revolutions have come from the East. Computer games, cell phones and animations. Everyone has a similar birthplace. In Japan, 14% of men hold some form of digital currency. In South Korea, 23% of people are involved in crypto. In other geographical areas, we see the penetration of digital currencies.
Now, despite the fall of Bitcoin in 2018, investing in it is not easy. But it is important to know that Bitcoin has seen much bigger declines. Priced at around $ 8,000 now, the crypto giant looks set to return to its former position. Many accounts have been created with digital wallets, but few have more than a thousand dollars in assets. On the other hand, early Bitcoin investors and those who believe in HODL policy have always been winners.
Despite all this, Lee believes that Bitcoin will triple in price by the end of 2018. On the other hand, he emphasizes the fact that at a price of eight thousand dollars, the bitcoin transaction fee is a factor of one. He adds that in the future, Bitcoin will help investors in transferring many values. Lee believes that the value of Bitcoin is lower than its real value and by the end of this year, the hype bubble will burst.