Fundstrat Global Advisors co-founder Tom Lee made some noteworthy statements on ARK Invest's FYI Podcast, hosted by Cathie Wood.
Lee stated that Ethereum could surpass Bitcoin in the coming period (flippening), likening this process to Wall Street's dominance of the dollar over gold in 1971:
“Ethereum could overtake Bitcoin in the same way Wall Street overtook gold after 1971. When the dollar came off the gold standard, Wall Street created the financial products that would dominate this new era. By 2025, everything will be tokenized, and Ethereum will be the foundation of this new era.”
Lee stated that he predicts the total value of the cryptocurrency ecosystem will reach $25 trillion by 2030, with most of that value held by Bitcoin. However, he also stated that Ethereum could become the new center of Wall Street innovation with the development of tokenization and smart contract-based financial products.
Recalling that US President Richard Nixon’s removal of the country from the gold standard in 1971 ushered in a period in which the dollar became a “synthetic” currency, Lee stated that Wall Street turned this change into an advantage in those years:
During that time, Wall Street launched 14 new financial products, from money market funds to mortgages. This doubled the dollar's share of global reserves in just a few years.
Lee argued that a similar transformation will occur by 2025, with the tokenization of the dollar and other assets on the blockchain creating a major opportunity for Ethereum. “Bitcoin is digital gold,” he said. “But in the world of tokenized assets, Ethereum will take over the role of the dollar and financial products. Therefore, Ethereum could overtake Bitcoin just as Wall Street overtook gold.”
Despite all these considerations, Lee stated that he is optimistic about Bitcoin and argued that the fair value of BTC in the long run could be between $1.5 million and $2.1 million.
*This is not investment advice.
