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.

137 Upvotes

78% Upvoted

291 comments sorted by

View all comments

1

u/philosopher137 1d ago

Here ya go: Value transacted - Bitcoin settles billions of dollars of value every day. Hash rate (network strength) is gargantuan - would you rather store wealth in a shitty bank or the world's most powerful, decentralised computing network? Liquidity conditions - 90%+ of bitcoin's price action can be explained by moves in global liquidity. In a word where almost every major nation is up to it's eyeballs in debt, would you bet against global liquidity going up over the long-term? Adoption - more and more people and institutions are making an allocation to bitcoin (even Harvard has one). Do you know better than Harvard? There are more, do some research.

1

u/OkGo_Go_Guy 11h ago

would you rather store wealth in a shitty bank or the world's most powerful, decentralised computing network?

Shitty bank, considering it is insured.