Investor Tom Lee states that Bitcoin could become the most profitable product for Wall Street giants as the US moves forward with making BTC a reserve asset.
In a recent interview on The Compound podcast, Lee likens the Strategic Bitcoin Reserve to the concept of the US petroleum reserve, pointing out that for every dollar spent on purchasing oil, over $400 is used for speculation in the markets.
With such extensive oil speculation, Lee emphasizes that countries need oil reserves to manage supply and avoid being “whipsawed” by volatility.
The head of research at Fundstrat argues that if oil speculation is valued at 400 times its market value, BTC, as a world reserve asset embraced by the masses, would likely be traded far more frequently and could become the most profitable product for Goldman Sachs and JPMorgan Chase.
“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 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, 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 the time of writing, Bitcoin is trading at $86,785.
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