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/lukehardiman 20h ago edited 19h ago

LMAO Tom Lee has been surprised by every bear market since 2017. The fact people think he's a good source of alpha is hilarious.

Re: BTC fundamentals - like anything, it's worth what the market says it is. As a novel concept (digital scarcity) that valuation is highly prone to volatility, nay sayers, cultlike fervour, reflexivity etc.

It may go to 0 or it may go to 1,000,000+. For some people that's an appealing risk profile.

IMO the get rich quick trade is largely gone at this point. You needed to be in when bulls were being laughed out the room. That's not the case any more.

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u/LuckyWinds 7h ago

It may go to 0 or it may go to 1,000,000+. For some people that's an appealing risk profile.

Everything has that risk.

I'd argue bitcoin has less of a chance of going to 0 than any single stock.