Fundstrat Global Advisors co-founder Tom Lee recently made some noteworthy statements on ARK Invest’s FYI Podcast, hosted by Cathie Wood. Lee suggested that Ethereum could surpass Bitcoin in the near future, a phenomenon often referred to as the “flippening.”
He likened this potential shift to Wall Street’s dominance of the dollar over gold in 1971. “Ethereum could overtake Bitcoin in the same way Wall Street overtook gold after 1971,” Lee explained. “When the dollar came off the gold standard, Wall Street created the financial products that would dominate this new era. By 2025, everything will be tokenized, and Ethereum will be the foundation of this new era.”
Lee also shared his prediction that the total value of the cryptocurrency ecosystem will reach $25 trillion by 2030, with most of that value still held by Bitcoin. However, he noted that Ethereum could become the new center of Wall Street innovation thanks to the development of tokenization and smart contract-based financial products.
Recounting the significance of U.S. President Richard Nixon’s removal of the country from the gold standard in 1971, Lee described how this move ushered in a period where the dollar became a “synthetic” currency. During this time, Wall Street capitalized on the change by launching 14 new financial products, ranging from money market funds to mortgages. This innovation helped double the dollar’s share of global reserves in just a few years.
Lee argues that a similar transformation will take place by 2025, with the tokenization of the dollar and other assets on the blockchain creating a major opportunity for Ethereum.
“Bitcoin is digital gold,” he said. “But in the world of tokenized assets, Ethereum will take over the role of the dollar and financial products. Therefore, Ethereum could overtake Bitcoin just as Wall Street overtook gold.”
Despite these considerations, Lee remains optimistic about Bitcoin’s future. He suggested that the fair value of BTC in the long run could be between $1.5 million and $2.1 million.
*This is not investment advice.*
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