Soon after Facebook announced its entry into the crypto-verse with its native digital asset Libra, financial watchdogs of every country seem to have taken interest in cryptocurrencies, mostly to impose regulations on them. Whereas a few other regulators seem to be putting an effort to understand the working of digital assets.
While the US government is looking into ease regulations pertaining to cryptocurrencies, Heath Tarbert the Chairman of Commodity Futures Trading Commission (CFTC), candidly expressed his view on how Ether [ETH] is a commodity. Previously, the CTFC issued a public call seeking for review to “better inform the Commission’s understanding” of the Ethereum network and the cryptocurrency Ether. The Chairman spoke at the recent Yahoo Finance’s All Markets Summit, and said,
“We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether—until now. It is my view as chairman of the CFTC that ether is a commodity.”
Furthermore the CFTC Chairman also highlighted his expectation toward the CFTC recognizing Ether futures trading on U.S. market sometime in the future.
Additionally, contradicting to what he previously asserted Tarbert coincides with the SEC’s former guidance according to which bitcoin and ether weren’t classified as “not securities.” However, he alleged to join hands with the SEC and look into the matter to present greater clarity.
Tarbert also addressed the open-ended “ambiguity in the market” on the position of many coins, while further suggesting that “similar digital assets should be treated similarly.” He further added,
“If the underlying asset, the original digital asset, hasn’t been determined to be a security and is therefore a commodity, most likely the forked asset will be the same.”
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”