Bitcoin’s mounting competition within cryptocurrency


JOBS. INVESTOR SEEM TO LIKE IT. THE STOCK IS UP 10%.>>>NOW THIS, BITCOIN, FELL BELOW 10,000 BUCKS YESTERDAY. THE SEC WARNED THAT IT COULD BE TIGHTENING REGULATIONS ON BITCOIN AND THE EXCHANGES I SHOULD SHEA, ON THE EXCHANGES. THOMAS LEE IS WITH US. HE IS WITH FUNDSTRATGLOBAL ADVISORS. HE LIKES BITCOIN, DOESN’T YOU?>>YEAH, WE DO.>>YOU THINK IT WILL GO TO 25,000 BUCK AS COIN THIS SUMMER?>>25,000 IS OUR YEAR-END TARGET. STUART: I’M SORRY. $25,000 A COIN THIS YEAR?>>YES. STUART: MAKE YOUR CASE. WHY?>>WELL, CRYPTOCURRENCIES ARE AN EMERGING ASSET CLASS. I THINK WHAT HELPS DRIVE CHANGES IN BITCOIN’S PRICE IS NEW INVESTORS DISCOVERING THE VIRTUES OF OWNING BITCOIN AND ATTRACTIVENESS OF IT. SO, WE THINK A LOT OF IT IS ROBIN HOOD AND OTHER ON-RAMPS FOR OTHER BITCOIN. STUART: WAIT A SECOND. DIDN’T THE SEC WAY, WAIT A MINUTE, THESE BITCOIN EXCHANGES, THE CRYPTOCURRENCY EXCHANGES, THERE ARE CASES WHERE PEOPLE HAVE ARE KNOWN OWNERS OF CRYPTOCURRENCIES THREATENED AT GUN POINT, HEY, TRANSFER YOUR BITCOIN SOMEWHERE ELSE AND THERE IS NO TRACE, YOU CAN’T BE TRACED? $15 BILLION WORTH OF HACKING LOSSES.>>YEAH IT IS, IT’S A LITTLE BIT LIKE EMAIL IN THE ’90s. SO I THINK LEARNING SECURITY AROUND MANAGING DIGITAL WALLETS IS SOMETHING WE’RE ALL, I THINK THAT THE INDUSTRY SORT OF HAS TO EDUCATE NEW USERS ON BUT, YEAH, I THINK IT IS — STUART: I DON’T GET IT, TOM, REALLY. IS IT NOW 2,000 CRYPTOCURRENCIES SOMETHING LIKE THAT, GROWING DAILY?>>YEAH. STUART: YOU SHOULD SEE THE PR PEOPLE COME TO ME SAY PUT THIS ON PUT THIS ON IT IS GREAT, THE NEW CRYPTOCURRENCY. THEY ARE A DIME A DOZEN.>>YEAH. I THINK THERE DOESN’T NEED TO BE THIS MANY CRYPTOCURRENCIES,. STUART: BUT THERE ARE.>>I THINK SOME ARE OBJECTS OF SPECULATION, BUT AGAIN, IF YOU LOOK AT THE STOCK MARKET THERE IS THOUSANDS OF SECURITIES, DOESN’T MEAN THERE AREN’T REAL COMPANIES OUT THERE. STUART: I UNDERSTAND.>>SO I THINK — STUART: YOU’RE OUT ON A LIMB BE. YOU’RE TAKING A VERY STRONG STAND HERE. YOU’RE SAYING TO ORDINARY, REGULAR INVESTORS, HEY, THIS IS INTERESTING, 25,000 BY THE END OF THE YEAR.>>YEAH, BUT THAT IS ACTUALLY NOT, IT IS NOT A HUGE LEAP IN VALUE INCREASE. BITCOIN, 94% OF BITCOIN’S MOVED GROWTH AND ACTIVITY PER USER. THAT IS EXPLAINED 94% OF THE MOVE SINCE 2013. WE’RE SAYING YOU GROW USER BASE 50%, THERE IS A NETWORK EFFECT AND YOU KEEPANCE TRACTION ACTIVITY COUNT ROUGHLY THE SAME YOU WILL GET TO 25,000. STUART: IS THERE REACTION FROM OTHER PEOPLE LIKE MY REACTION, WHAT ON EARTH ARE YOU TALKING ABOUT HERE, A LITTLE INCREDULITY?>>MOST TRADITIONAL INVESTORS ARE SKEPTICAL. IN 1990S WHEN I WAS WIRELESS ANALYST, MANY WERE SKEPTICAL OF CELLULAR TECHNOLOGY AND THOUGHT IT WAS GIMMICK, SO MUCH MORE EXPENSIVE TO USE THAN A LANDLINE FINE BUT LOOK TODAY, EVERYBODY USES A CELL PHONE. DIGITAL MONEY IS SAFER WAY TO USE AND STORE MONEY THAN TRADITIONAL MONEY, EVEN THOUGH WALLETS CAN GET HACKED, YOU CAN’T CREATE FRAUD ON THE BLOCKCHAIN. STUART: IF YOU BUY IT AT 10,000, YOU GO TO 20,000, YOU MADE A $10,000 CAPITAL GAIN, BUT YOU DON’T PAY TAX ON IT, DO YOU?>>NO, YOU DO PAY. STUART: YOU ARE SUPPOSED TO, BUT IF IT IS NOT TRACEABLE?>>I THINK THAT REGULATION IS VERY IMPORTANT IN THE SPACE BECAUSE WE DON’T WANT FRAUDS AND INSTITUTIONS WHICH HAVEN’T REALLY PARTICIPATED IN A BIG WAY WANT REGULATIONS. SO I THINK THAT THINGS THAT THE SEC IS DOING AND GLOBALLY MAKING THIS MUCH MORE ATTRACTIVE PLACE FOR MONEY TO COME IN SO. STUART: REGULATION IS NOT A BAD THING IN THIS CASE. GIVES MORE SECURITY TO THE BUYER OF THE BITCOIN.>>I DON’T THINK PEOPLE BUY BITCOIN TO AVOID CAPITAL-GAINS TAXES. I THINK THEY’RE VERY ATTRACTED TO THE SECURITY OF DIGITAL MONEY AS A STORE OF VALUE. SO I DON’T THINK IT’S A FIELD OF TAX EVADERS AND SCAMMERS. IT’S, REALLY NEW TECHNOLOGY. STUART: MONEY LAUNDERING, DRUG MONEY, PRIVATE TRANSACTIONS?>>I’M SURE A LOT OF PEOPLE BELIEVE THAT IS THE STORY OF CRYPTO. BUT WIRELESS PEOPLE THOUGHT IT WAS YUPPIE TOY WHEN THEY THOUGHT CELLULAR OR JUST AN EXPENSIVE LITTLE TOY THAT THE LANDLINE COMPANIES WERE GOING TO MAKE ZERO. STUART: I THINK YOU’RE A BRAVE MAN, TOM LEE. SO I WILL MOVE ON TO DIFFERENT SUBJECT ENTIRELY HAVING EXHAUSTED BITCOIN WITH YOU, I WILL TALK TO YOU ABOUT THIS ONE. HEALTH INSURER CIGNA, AGREED TO BUY EXPRESS SCRIPTS. 67 BILLION-DOLLAR DEAL HERE.>>YEP. STUART: I SEE THIS AS A MOVE TOWARDS ONE-STOP MEDICAL CARE SHOPPING, SOUP-TO-NUTS, A RESPONSE TO THE AMAZON MOVE INTO HEALTH CARE ITSELF. YOU WITH ME ON THIS?>>YES, ABSOLUTELY. I MEAN — STUART: CAN’T LEAVE IT AT THAT. YOU GOT MORE ON THIS?>>THE HEALTH CARE INDUSTRY IS RIPE FOR DISRUPTION. IT WAS A INDUSTRY NOT NECESSARILY PRICED ON COMPETITION T WAS NOT COMPETITIVELY PRICED. DRUGS ARE BASED ON ROE. STUART: YEP.>>AND AS PERCENTAGE OF GDP IT IS CLOSE TO 20%. AMAZON HAS REALLY DISRUPTED A LOT OF MARKET BECAUSE THEY HAVE SIMPLIFIED A LOT OF PROCESSES, ELIMINATED A LOT OF COSTS. IT IS ATTRACTIVE TO SEE THIS HAPPENING IN HEALTH CARE. IT IS NOT GREAT FOR A LOT OF HEALTH CARE COMPANIES BUT AS YOU KNOW A LOT OF HEALTH CARE COMPANIES ARE TRYING TO CUT COSTS REDUCE COSTS IN THE INDUSTRY. THOSE ARE GREAT EQUITIES TO OWN. STUART: YOU HAVE A FASCINATING IDEA ON MAJOR STORIES OF THE DAY. WE APPRECIATE YOU BEING WITH US.>>THANKS FOR HAVING ME. STUART: YOU CAN COME BACK, IF NOT CAREFUL SON, YOU WILL COME

15 thoughts on “Bitcoin’s mounting competition within cryptocurrency”

  1. every transaction is saved on the blockchain, so I think criminals rather stick to cash once we're better at blockchain analysis

  2. Why do they keep saying crypto currency is an emerging asset when bitcoin is has been around for 9 years? So many ppl know about it and have access buy them through their phones and pcs too. It only went up to 20k due to market manipulation. Sounds to me like crypto was dead a long time ago. This is their last desperate attempt to steal money before centralized blockchain currencies replace them.

    The only ways i c the value go up is more market manipulation and getting ppl who dont research to buy in.

    No one spends their crypto, which is their intened purpose, but just hodl them…

  3. Can Ripple’s XRP Unseat Bitcoin As King Of Crypto?
    http://www.talkmarkets.com/content/us-markets/can-ripples-xrp-unseat-bitcoin-as-king-of-crypto?post=168703

  4. FAUX NEWS has the worst anchor people – always shoving their uninformed, backward views on everyone. That guy should have just shut up and let the expert speak.

  5. Government needs to get out of the way. Common sense regulation but not overbearing regulation. Once the Mt Gox drama fades and goes away, the prices will stabilize and skyrocket again. Finally there are some US politicians who are starting to get it to the point of putting pressure on agencies to NOT over regulate. See my constantly updating cryptocurrency and tech news aggregation site. It's a great resource to bookmark and share with your new junkie friends. http://techbait.net

  6. Lee proposed the Bitcoin Misery Index to be able to tell when to buy or sell. I am curious where to be able to obtain this number.

  7. Wait, someone brought up So Crates? So, what do Crates have to do with this?

  8. All noise before mainstream adoption ! Remember millenials have grown up with pcs and they hate working with banks ! Bitcoin will be worth much more ! #BTC # $100,000

  9. Thomas Lee : People are attracted to security of digital money as store of value. No They are attracted to profit if bitcoin get a high value, they don´t care if is a currency or storage of value.

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