Ethereum Classic [ETC] Summit: “Cryptocurrencies will join the likes of Google and Amazon”

Day two of the ETC Summit kicked off with Tom Lee of Fundstrat speaking about the first time he really got into Bitcoin [BTC] and how the sheer economics of cryptocurrencies opened up a vista of avenues for him.

Lee, who was part of the discussion panel spread over both days of the conference, talked about the similarities between cryptocurrencies and traditional financial tools such as bonds and equities. It was pointed out to the audience that in both cases the branding has been correct with another similar tangent being the amount of time it took for people to grasp some details about both commodities.

The financial expert also spoke about how the cryptocurrency asset itself was something that needs to be used, unlike the traditional commodities that needed fringes like receipts and bills. The discussion then moved on to price after a tumultuous couple of weeks that saw the price of cryptocurrencies take a massive fall. Tom stated:

“Unlike other markets, the price variations in crypto are so different. It is very surprising to see. Because there is no fundamental value, that includes pay dividends, the price momentum plays a much bigger role unlike the traditional financial world.”

The financial analyst was confident in saying that the products and services in the cryptocurrency industry are undergoing leaps and bounds of developments and in a few years they too will come close to the standards of stocks and bonds.

Continuing on the price run, Lee went on to say that in cryptocurrency, the retail investors make up almost 90-95% of the total investments, making institutional investors into a niche. This, he said, was a huge disparity with the traditional financial market where the institutional investors played a much bigger role.

Tom Lee was also asked about his theory of connecting the Metcalfe’s law with the cryptocurrency industry. He said:

“So, the Metcalfe’s law basically states that the effect of a telecommunications network is proportional to the square of the number of connected users of the system. This idea that the value is not a linear function but rather a log function is something that is arbitrary to Bitcoin and its community. The users drive up the value and sometimes in terms of many multiples.”

The panelist also responded to some common questions that abound in the cryptosphere. Lee further gave his insight on the long-term holding of cryptocurrencies as well as short term. He stated that long-term players in the space hold onto cryptocurrencies for a long time and conduct a sell-off at a peak whereas short sellers look to make a quick profit and get out. It was also pointed out that on some trading platforms the trading market cap difference between Ethereum [ETH] and Ethereum Classic [ETC] was almost exactly the same as the total market cap difference, something that came as a surprise to many.

Lee then went on to speak about what lies in the future for Bitcoin and the cryptocurrency industry in general. He stated that the technology is there for everyone to use and that sometimes the rise and fall can be confusing citing examples of the astronomical shoot up of Dogecoin [DOGE] while other coins were crashing. According to him, the recent crash has actually shown that 2017’s hype was misplaced and that there is a need to cleanse the ecosystem.

He further added that the need of the hour is to implement new technologies like smart contracts that will actually drive the market and further the cause of the cryptocurrency industry. He elucidated on the FANG [Facebook, Amazon, Netflix, Google], an elite club that drives the technological space and said that in the future cryptocurrencies will become part of the FANG club.

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