Bitcoin analyst Tom Lee See’s a Rise In Bitcoin
Bitcoin analyst Tom Lee has predicted that the cryptocurrency could end the year explosively higher and citing a correlation between cryptocurrency and emerging markets. Tom Lee has made his new prediction in an interview during a Trading Nation show organised by CNBC August 25.
The Head of Research at Fundstrat Global Advisors has said that according to Tom Lee he still thinks it’s possible, that Bitcoin price could surge to as high as $25,000 this year. Tom Lee has based his prediction on the relationship between the price of BlackRock and Bitcoin on iShares MSCI Emerging Markets Exchange-Traded fund (ETF), which tracks medium sized and large companies in emerging markets.
According to Tom Lee, the important fact lies in that, Both markets bitcoin and emerging market are running somewhat parallel to each other, with both having really essentially peaked in early 2018, as well as both bitcoin and emerging market having been in a downward trend from then till now.
According to Tom Lee, recent trading activity of hedge has shown that hedge funds are not buying funds they have stopped buying into funds which are tied to emerging markets due to market sell-off risks, which, in turn, leads to reduced purchases of Bitcoin and other cryptocurrency too.
As Tom Lee believes, a little change in the direction of the emerging markets would signal a similar change in Bitcoin trend: “Until emerging markets begin to turn, Lee thinks in some ways that the correlation of bitcoin and emerging markets is going to hold and tell us that sort of the risk on mentality is those buyers are not buying bitcoin.”
In the interview at the Trading Nation, Tom Lee pointed out and said that the tide is changing for cryptocurrency but in this case for both emerging markets and Bitcoin, especially if the U.S. Federal Reserve slows down its interest rate and hikes. Last month that is on July, Lee assumed and voiced his stance that Bitcoin could reach anywhere between $22,000 to $25,000 by the end of 2018.
Aleksi Grym has given the Title to Cryptocurrency as “Great Illusion”
The digitalisation advisor at the Bank of Finland, Aleksi Grym, declared in a paper published that “the concept of a cryptocurrency is a fallacy.” on behalf of the bank. While sharing his thoughts and ideas, he has argued with them that cryptocurrency are not real forms of money and are “not currency at all but rather accounting systems for non-existent assets.”
The advisor at the Bank Aleksi Grym has also questioned the confusing choice of terminology, which is featured and authored by Satoshi Nakamoto, in the original white paper bitcoin pseudonymous creator. Grym to make his points clearer for the people has drawn parallels between how a traditional bank works and how bitcoin functions. First, with bitcoin, the accountants in a traditional bank are similar to the miners. Second, the centralized ledger held by banks to record account balances and transactions are similar to the bitcoin blockchain. “The main difference between a cryptocurrency system and a traditional bank system is that in a cryptocurrency system the ledger is distributed across a network of computers, while a traditional bank maintains the ledger in a centralised computer system,” he also states on this adding that there is no practical difference in what the systems are doing.
Aleksi Grym compares accountants in a traditional bank as miners, while a bank’s centralised ledger is like bitcoin blockchain.
He also said to make his point clearer for the people “Money, at its essence, is a unit of account,” he adds concluding that cryptocurrencies cannot replace the current forms of money and will never be the only money form as well. According to Grym, cryptocurrency at best can act as an effective way of financial record-keeping. Even back in the year 2014, the Bank of Finland classified bitcoin as a commodity type and not a currency.