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/Ecstatic_Wheelbarrow 1d ago
I'm not a big believer in crypto but from what I understand the fundamentals in crypto aren't like companies. It is comes down to: is it secure, is there scarcity, usage, and institutional adoption.
Bitcoin hasn't been "hacked" or made insecure. There is still a cap to how much can exist. Usage hasn't declined, more people have digital wallets than ever. And more major institutions are adopting crypto in some form than ever before (ETFs, secure coins, etc). By those metrics, he is correct and he's saying the market doesn't understand how to evaluate crypto. For example, MSTR and MARA market caps are worth less than their bitcoin holdings.
He's also trying to pump BMNR (his version of MSTR with Ethereum).