That’s according to SkyBridge Capital founder and managing partner, Anthony Scaramucci, who spoke 24 June at the Fixed Income Leaders Summit in Nashville.
Scaramucci noted that the so-called crypto revolution is difficult to understand, partly because it’s so new, and many people including Warren Buffet are convinced that it’s a fad, or a joke. But in the mid 1990s, Bill Gates said the internet was a fad, and the infamous Barron’s ‘Amazon.bomb’ article in 1999 evinced similar skepticism to the current landscape for digital assets.
“But if you strain the emotion out…Blockchain is a wonderful delivery mechanism that allows two parties to transfer value to each other without a third party,” Scaramucci said. “The two parties don’t have to like, know, or trust each other.”
Use cases include paying a restaurant bill, or even directly paying a manufacturer such as Procter & Gamble for consumer products.
By way of background, Scaramucci said “Web 1” was essentially a search engine, and “Web 2” facilitated interaction via ecommerce and social media. “Web 3” is about how decentralized crypto and digital assets are empowerment mechanisms.
“There is a massive opportunity to tokenize markets,’’ Scaramucci said, though he acknowledged that established financial institutions are not ready to get involved in a meaningful way.
Crypto is on an adoption curve, or S-curve, and as such it won’t be a smooth ascent. “With transformative technology, you have to expect a boom-bust cycle,” Scaramucci said. “Crypto is here to stay. We’ve seen a leveraging flush over the past 6 weeks, but in my opinion it is a buying opportunity.”
Scaramucci suggested investors own one of the half-dozen or so cryptocurrencies that he expects to survive the shakeout, which include bitcoin, Ethereum, and Solana. “Own a small piece, make sure it’s unlevered, and don’t look at it,” he said.
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