While crypto’s entry into mainstream finance was received quite sceptically by the U.S. government, the State of Wyoming’s jurisdiction has recently been more open to regulate the innovation.
Politician Tyler Lindholm featured in a podcast along with Caitlin Long and Trace Mayer, long initiated the discussion by going through Wyoming’s history in building progressive laws, while Lindholm stated,
“Back to the ideology of the state of Wyoming and why we’re able to get things done here in such a quick fashion. It also has to do with the fact that we’re hungry for a new economy although we are not broke.”
He asserted that as the digital age with assets like Bitcoin goes on, it will instantly cause people to retrace their spending behaviours
“because it’s going to be a lot harder to get the money in order to spend it because you can’t just confiscate it through inflation, which is a form of taxation without representation and no due process of law.”
He also added quite rightfully that as more discussions are held related to laws, numerous existing laws will eventually be discarded or replaced to fit the needs of a changing society and thoughts of citizens.
Commenting on the situation in the U.S. and the government, he added,
“The most important thing that should be happening is, is tax clarification in the U.S. at the federal level. And we’ve already done everything we can do in Wyoming, which says there’s no state-level tax on crypto period.”
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.”