Investor Tom Lee says that Bitcoin could end up becoming the most profitable product for Wall Street giants as the US goes ahead with making BTC a reserve asset.
In a new interview on The Compound podcast, Lee compares the Strategic Bitcoin Reserve to the concept of the US petroleum reserve, noting that for every dollar used to purchase oil, over $400 is used to speculate in the markets.
[adinserter block="1"]With so much oil speculation, Lee says countries need oil reserves in order to control supply and not get “whipsawed” by volatility.
The Fundstrat head of research says if oil speculation is worth 400 times its market value, BTC, as a world reserve asset adopted by the masses, would likely be traded much more and could be Goldman Sachs and JPMorgan Chase’s most profitable product.
“Let’s say [Bitcoin] becomes 10% of people’s net worth and banks start to use it to secure information. Remember on the blockchain, you can just store one pixel of a 10 million-page document but the hash will detect if you change one pixel, so that’s why you’re going to use the Bitcoin to secure information.
Well, that’s really valuable but then wouldn’t the US want to be able to control this blockchain or exert some way to censor it somehow? And once banks start trading Bitcoin, like Citadel Securities, it will probably be the most profitable product for Goldman and JPMorgan…
And if oil is traded 400 times, Bitcoin might be a thousand times, it’s going to be a hugely tradable commodity.”
At time of writing, Bitcoin is trading at $86,785.
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