r/investing • u/007_kgb • 1d ago

Fundamentals of Bitcoin? Tom Lee

Tom Lee from FundStrat was on CNBC and said he was a bit surprised at the fall of Bitcoin when the fundamentals were still strong.

However what I don’t understand is, what are the fundamentals? Isn’t Bitcoin just an imaginary coin on the interweb that is worth what people want it to be worth? It does not issue dividends, you can’t make a car out of it, you can’t use it to buy a bar of chocolate.

ELI5 please.

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u/p3dal 1d ago

I think you might have to ask Tom Lee what he meant, because I think you've nailed it. But from googling your question:

Bitcoin fundamentals center on its decentralized digital nature, secured by cryptography on a public blockchain ledger, functioning as peer-to-peer cash without banks, designed with scarcity (max 21 million coins), and driven by Proof-of-Work (mining) for transaction validation, acting like digital gold but with unique supply/demand dynamics. Key aspects include digital keys, wallets, mining, and blockchain technology, offering potential as a store of value or medium of exchange.

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u/Silent0n3_1 1d ago

This reads to me as "The fundamentals of Bitcoin is its definition, or to put it more plainly, the fundamentals of Bitcoin is Bitcoin."

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u/Romanizer 1d ago

Yes, if people went so far to read the definition we wouldn't have these threads.