title: Bitcoin (BTC) Could Become the Most Profitable Product for Wall Street Giants

Investor Tom Lee says that Bitcoin could end up becoming the most profitable product for Wall Street giants as the US goes ahead with making BTC a reserve asset.

Investor Tom Lee says that Bitcoin could end up becoming the most profitable product for Wall Street giants as the US goes ahead with making BTC a reserve asset.In a new interview on The Compound podcast, Lee compares the Strategic Bitcoin Reserve to the concept of the US petroleum reserve, noting that for every dollar used to purchase oil, over $400 is used to speculate in the markets.With so much oil speculation, Lee says countries need oil reserves in order to control supply and not get “whipsawed” by volatility.The Fundstrat head of research says if oil speculation is worth 400 times its market value, BTC, as a world reserve asset adopted by the masses, would likely be traded much more and could be Goldman Sachs and JPMorgan Chase’s most profitable product.“Let’s say [Bitcoin] becomes 10% of people’s net worth and banks start to use it to secure information. Remember on the blockchain, you can just store one pixel of a 10 million-page document but the hash will detect if you change one pixel, so that’s why you’re going to use the Bitcoin to secure information.

Investor Tom Lee says that Bitcoin could end up becoming the most profitable product for Wall Street giants as the US goes ahead with making BTC a reserve asset.In a new interview on The Compound podcast, Lee compares the Strategic Bitcoin Reserve to the concept of the US petroleum reserve, noting that for every dollar used to purchase oil, over $400 is used to speculate in the markets.With so much oil speculation, Lee says countries need oil reserves in order to control supply and not get “whipsawed” by volatility.The Fundstrat head of research says if oil speculation is worth 400 times its market value, BTC, as a world reserve asset adopted by the masses, would likely be traded much more and could be Goldman Sachs and JPMorgan Chase’s most profitable product.“Let’s say [Bitcoin] becomes 10% of people’s net worth and banks start to use it to secure information. Remember on the blockchain, you can just store one pixel of a 10 million-page document but the hash will detect if you change one pixel, so that’s why you’re going to use the Bitcoin to secure information.

Well, that’s really valuable but then wouldn’t the US want to be able to control this blockchain or exert some way to censor it somehow? And once banks start trading Bitcoin, like Citadel, it will probably be the most profitable product for Goldman and JPMorgan…

And if oil is traded 400 times, Bitcoin might be a thousand times, it’s going to be a hugely tradable commodity.”At time of writing, Bitcoin is trading at $86,785.See More Uncovering Crypto's Value in a New Light: A Deep Dive with Tom LeeThe Strategic Bitcoin Reserve: A Move Toward Direct InvolvementIn August, US lawmakers proposed setting up a Strategic Bitcoin Reserve, aiming to diversify the country's foreign exchange reserves beyond the US dollar.

And if oil is traded 400 times, Bitcoin might be a thousand times, it’s going to be a hugely tradable commodity.”At time of writing, Bitcoin is trading at $86,785.See More Uncovering Crypto's Value in a New Light: A Deep Dive with Tom LeeThe Strategic Bitcoin Reserve: A Move Toward Direct InvolvementIn August, US lawmakers proposed setting up a Strategic Bitcoin Reserve, aiming to diversify the country's foreign exchange reserves beyond the US dollar.

This proposal came shortly after the US Securities and Exchange Commission (SEC) sued major crypto exchange Coinbase and crypto token issuer Chainlink Labs.

The move to invest in Bitcoin is part of a broader effort by the US to counterbalance the rising influence of China and other emerging economies in the global financial system.

As the world's leading reserve currency, the US dollar has enjoyed significant advantages in recent decades. However, the rise of new technologies and geopolitical shifts are presenting new challenges.

Bitcoin, with its decentralized nature and scarcity, offers an alternative asset class that could hedge against inflation, currency devaluation, and geopolitical risks.

This Strategic Bitcoin Reserve would serve as a buffer against these emerging threats, safeguarding the US financial system and economic stability in the long term.