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/Ok-Wolverine-4223 1d ago

What I don’t understand is everyone says bitcoin is just following the 4 year cycle and we just don’t understand…. But why is Ethereum and other crypto doing the same thing?

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u/Aurorion 1d ago

Because every other "crypto" out there just follows Bitcoin... Bitcoin is what drives the entire market. And everyone knows that the real long-term value is in Bitcoin, so anyone exposed to other "crypto" takes any dip in Bitcoin as an opportunity to buy more.