Thomas Lee spent more than two decades on Wall Street, with a final stop as chief equity strategist at J.P. Morgan. He now runs a boutique consultancy called FundStrat, and last week in LA gave an intriguing and bullish presentation on cryptocurrencies. Some highlights:
- Lee argued that cryptocurrencies are to Millennials what gold was to the Silent Generation and what equities were to Baby Boomers. And it’s amplified by Millennial distrust of banks and of government.
- Millennials are just beginning to enter their prime income years. So if you accept Lee’s thesis, then we’re just an inning or two into cryptocurrency price appreciation. And, remember, this is the largest-ever U.S. generation with immigration included (yes, even outpacing Boomers).
-And if you really accept it, then perhaps you’ll go along with Lee that Bitcoin could hit $10 million a piece by the middle of the 2030’s.
- He also estimates that Coinbase profits could exceed ICE profits this year.
- Lee acknowledges that crypto growth runs counter to many textbook economic beliefs, but points out that such textbooks are constantly in need of edits. For example, aggregate U.S. private equity market value is on a path to equilibrium with public markets — something that was unthinkable just a decade or so ago.
- One for the bears: Since Lee made his presentation just a few days ago, Bitcoin has lost around 24% of its value, which translates into more than $2,300 each.