Fundstrat’s Tom Lee thinks Ethereum (ETH) could flip Bitcoin (BTC).
In a new interview with ARK Invest’s Cathie Wood, Lee says widespread tokenization could catapult the second-largest crypto asset by market cap.
Overtaking BTC would require a market size greater than $2.2 trillion at time of publishing.
The Fundstrat co-founder cites former US President Richard Nixon’s decision to officially move the US dollar off the gold standard in 1971.
Lee notes the immediate beneficiary of that decision was gold, but he says the move also convinced Wall Street to create products to reinforce dollar dominance, which benefited equities over the long term more than bullion.
“So as we move not just dollars onto the blockchain, which is stablecoins, but we’ll move stocks and real estate, dollar dominance is going to be the opportunity of Ethereum. Digital gold is Bitcoin, and so in that world, we believe Ethereum could flip Bitcoin, similar to how Wall Street and equities flipped gold post-1971.
Now that is just our working theory, because I’m still a Bitcoin bull, so I’m very bullish on Bitcoin.”
Lee says Fundstrat believes Bitcoin’s fair value should be $1.5-2.1 million per BTC, which he thinks in turn would send ETH’s price skyrocketing.
“That would, of course, provide upside to a neutral smart contract platform where a lot of Wall Street will innovate [with] real-world assets.”
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