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Tom Lee: “The Facebook Announcement is Validation that the Mainstream are now Focused on Cryptocurrencies”

Tom Lee: “The Facebook Announcement is Validation that the Mainstream are now Focused on Cryptocurrencies”
Breaking News / Crypto Market

The co-founder and head of research of Fundstrat, Tom Lee has recently taken part in a new interview with CNBC Futures Now where he gave his opinion on the new Facebook cryptocurrency, Libra.

Lee believes that this new stablecoin from the social network is proof that cryptocurrency is going mainstream.

“The Facebook announcement is a complete validation that mainstream is now focused on cryptocurrencies and I think it really destroys those arguments that say, ‘I believe in blockchain, not Bitcoin.'”

Lee says that Facebook creating a cryptocurrency is good news for Bitcoin in the long-term.

“This is clearly a cryptocurrency play. But the salvo, or the real focus, is decentralized finance. And I think it is more targeted at stablecoins and creating a new kind of banking system, and it’s very complimentary to Bitcoin. I think this is actually a really bullish development for Bitcoin. I think it’s really bad for stablecoins and anyone who’s been trying to do decentralized finance.

One thing to keep in mind – Facebook’s annual revenue per user is probably $50. That might be a little high. But an average bank generates close to $1,000 per user. So, Facebook has a 20x upside to their customer model if they start doing banking services, and so I can see why banks aren’t really enthusiastic about this.”

When it comes to the price of Bitcoin, the co-founder says that the leading crypto is now in a full-blown bull-market and is well on the road of return to its all-time high of $20,000.

“I think Bitcoin ultimately becomes a reserve currency in crypto. Bitcoin at $9,000 has only been at this level in 4% of its history. We’re deep into a bull market and people are pretty silent about it. I think Bitcoin is going to easily take out its all-time highs.”

Despite Facebook’s announcement this week, the price of Bitcoin hasn’t moved much. The price is currently sat at $9,139 following a 0.78 percent decrease over the past 24 hours.

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