CEO of World’s Largest Cryptocurrency Said Financial Assets Like Cryptocurrencies Only Appear Once Per Generation
Grayscale investmentsCEO Michael Sonnenshein said financial assets like cryptocurrencies only appear once per generation.
- Now that the “genie” has come out of its bottle, Sonnenshein believes that several digital currencies will grow and prosper with each other in the future.
- According to him, the regulation will be good and valid towards cryptocurrencies as an asset class.
Grayscale Investments is the largest
cryptography ‘genius’ in the bottle.
“Crypto is a bit analogous to… The genie is out of the bottle, isn’t it,” he told Business Insider US during a
. @ ashwinraghunath in conversation with Michael Sonnenshein from @Grayscale (@Sonnenshein) & Siddharth M from @ WazirXIndia… https://t.co/PeIXYnDHPt
– Business Insider India (@BiIndia) 1624620600000
Grayscale has more than
$ 30.4 billion assets under management on July 1, the bulk of the basket being made up of Bitcoin. And, Sonnenshein, who heads the company behind the world’s largest crypto fund, is betting big. He thinks cryptocurrencies are not going anywhere anytime soon. “The idea of a decentralized currency is something that’s here to stay, it’s an idea that has captivated investors around the world,” he said.
Sonnenshein argues that crypto is by no means a “missed bus”. According to him, new financial assets are only created once per generation, and
crypto-currencies are still in their infancy. “For an investor, it’s about the value that is created,” added Siddharth Menon, co-founder and COO of WazirX.
Here are the 12 best Sonnenshein quotes from the interview, slightly edited and condensed for clarity:
- Most would say crypto is a bit analogous to… The genie is out of the bottle, right? It’s here to stay. The idea of decentralized currencies is something that is here to stay. It is definitely something that has caught the attention of people all over the world.
- From the investors we talk to, in their minds, there is no doubt that cryptocurrency as an asset class is here to stay. In that sense, they want to make sure that they pay attention to the asset class, understand it and then find the right allocation for it.
- When you zoom out, cryptocurrencies have only really started in the last 10-12 years. New asset classes are not born every day or every year. This is usually a once in a generation opportunity. So if people remember the early days of this asset class, there is still the potential to develop a lot more use cases, more individuals and investors to engage, and a lot more utilities. to unlock around this asset class with certainty.
- Sometimes people reject Bitcoin and other cryptocurrencies because of their accessibility. When you look at places like India, you have Paytm and all these other ways that value is shifted. While Bitcoin is very different. The way digital currencies are moved is done through different means – over these secure networks, which require a bit more technological know-how. As the asset class grows, the ease with which individuals can move Bitcoin will only get easier.
- El Salvador is just the first of many governments that haven’t done the best job of controlling their currency or have had to rely on reserve currencies like the US dollar – which might start looking at Bitcoin and others. value mechanisms to help their citizens participate in their savings.
- There is a very low barrier to entry to creating new cryptocurrencies. And that’s why we have so many today. We certainly believe in a world where multiple cryptocurrencies coexist. If you look at gold versus silver versus platinum, all of them fall into the precious metal family with different use cases, prices, and addressable markets. Likewise, we’re going to see something like this around digital currencies where multiple digital currencies will thrive and grow together, but suit different use cases.
- We’ve seen both accommodating and prohibitive policies around digital currencies, much of it rooted in gut reactions to try to anticipate what might happen – to stifle some of the excitement and excitement.
- It’s a very powerful idea – the idea that people are using a currency that is not created by the government – so I’m not surprised to see some of these prohibitive policies. But, at the end of the day, I know that some of these countries, which are more forward-thinking – who want to embrace technology and innovation – are going to come around digital assets like Bitcoin, Ethereum and others.
- Many people still believe that digital currencies, or Bitcoin, are a good use for illicit activities. In fact, it is probably the worst mechanism you can use for illicit activity. Any transaction you undertake in Bitcoin is going to leave a trail of breadcrumbs.
- Many investors have rejected cryptocurrency because they don’t understand it. Assets like Bitcoin are not necessarily cash assets as they can see when they invest in common stocks. It doesn’t really correspond to a commodity or a currency. And, thus, he mixes up a lot of concepts that investors are familiar with.
- It wouldn’t surprise me to see people keep thinking about their local currencies and what that can have on their ability to save money, pass money on to the next generation, finance a business, finance education, etc. Bitcoin and other assets to help them be a part of financial inclusion around this.
- U.S. regulators seek a certain level of maturity within the crypto market – a market that can be free from manipulation and where they can put in place surveillance sharing arrangements. And, ultimately, more regulation will be good and validating towards this asset class.
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