The co-founder of Fundstrat Global Advisors, Tom Lee, says crypto firms moving toward regulation will be a good thing for Bitcoin’s price.
Tom Lee: Crypto Companies Are ‘Running Towards’ Regulation
Tom Lee, a bullish advocate for Bitcoin, made his remarks in a note to clients yesterday. In it, he mentioned how the market could soon see a turn in the tide with regulatory improvements taking place.
He was, of course, talking about the steps being taken by San Francisco-based crypto exchange Coinbase and Goldman Sachs-backed digital currency platform Circle.
According to Lee, the regulatory space for the cryptocurrency market is improving, with the two aforementioned businesses “running towards” regulation, reports CNBC. He added:
We believe both companies would only make these moves if their perception of regulatory risks in crypto was improving.
Since the beginning of the year, regulatory crackdowns have greatly impacted market prices. Mid-December saw Bitcoin trading at within touching distance of $20,000; yet six months later, that almost seems like a distant dream. At the time of publishing, the number one cryptocurrency is trading at $7,649, according to CoinMarketCap. Bitcoin has dropped in value by 55 percent since January. With market prices remaining stagnant, one research firm has taken the step of lowering their price prediction for Bitcoin.
Yet, now that Coinbase and Circle are taking steps in the regulatory space, Lee argues that the regulatory tide is shifting, and for the better.
Bitcoin to Become Single Global Currency?
With positive steps such as this being taken within the market, industry watchers will be keen to see what, if any, impact this will produce on prices. Despite a slump in values, though, that hasn’t stopped many from providing predictions of their own on where they believe Bitcoin will head to.
Steve Wozniak, co-founder of Apple, recently said that he hopes Bitcoin will become a single global currency one day, mimicking the opinions of Jack Dorsey, CEO of Twitter and co-founder of payments processing company Square, who said he personally believes Bitcoin will become the single global currency in 10 years.
Tim Draper, the founder of Draper Fisher Jurvetson (DFJ), an American venture capital firm, is another advocate of Bitcoin. He also has high hopes for the market. Last November, he said that in five years there will be no reason to use fiat currencies to pay for things as cryptocurrencies will have replaced them. We’ll just have to wait and see if he’s right.
Do you think regulatory steps taken by Coinbase and Circle will help Bitcoin’s price? Let us know in the comments below.
Images courtesy of Shutterstock and CNBC.
Source: Read Full Article