LOS ANGELES: One billion people worldwide will use cryptocurrency technology in one way or another by the end of this decade, Coinbase global CEO Brian Armstrong said at the 2022 Global Conference at the Milken Institute.
Armstrong joined the stage in Beverly Hills, California, ARK Invest CEO Cathie Wood, another crypto bully and initial investor in digital assets and blockchain technology.
(ticker: COIN) is the fifth largest share of
Fund listed on the ARK Innovation Stock Exchange
(ARKK), the company’s flagship product.
Crypto has started to enter the mainstream in recent years. Armstrong said about 200 million people worldwide used crypto. Institutional investors are increasingly adopting digital currencies in their portfolios and some retirement savers can see soon
as an option in your 401 (k) plans.
“This is a new asset class and you have to have a point of view,” Wood said.
The rate of cryptocurrency adoption in the United States is too slow due to regulatory uncertainty, Wood added. “I was expecting more clarity,” he said. “Basically we have seen this from a negative point of view, and I have seen other countries from a positive point of view. If we are not lucky, regulatory arbitrage will take the market away from us.”
The chairman of the Securities and Exchange Commission, Gary Gensler, has been cautious when it comes to regulating cryptocurrencies. He said many tokens traded on cryptocurrencies are probably securities, which would require more disclosure of both tokens and platforms that are not listed on security exchanges such as Coinbase.
Armstrong sees reason for optimism, though he points to a recent executive order from President Joe Biden calling for protections from possible innovations in the crypto industry. Last month, the White House outlined a national policy to address the risks and benefits of digital assets and their underlying technology.
“I think this is a very bipartisan issue,” Armstrong said. “Most of the people I’ve met in Congress, 50% or more, are now in favor of cryptography. About one in five Americans used crypto or tried it somehow, Armstrong said, and the number is growing rapidly. “That is a mass voting group. It is fast becoming politically unpopular to be anti-crypto,” he added.
The application of blockchain technology in everyday life goes beyond digital currencies, the two CEOs said.
Armstrong sees use of technology on social media. When asked about his opinion on the recent acquisition of Twitter by Elon Musk, the CEO of Coinbase said that the company has a huge opportunity to become a leader in decentralized social networks, where the identity and online content of users they are not owned by a particular platform, but by users themselves through a decentralized ledger.
This means that anyone can access all the information on Twitter and display it in various ways. “It simply came to our notice then [social-media content]and I think that’s one of the directions Twitter can go, “Armstrong said.” I imagine there are a number of startups and other companies that will be building competing decentralized social media products if [Twitter doesn’t.]”
Another possibility is a new form of government, or so-called cryptographic cities, where people buy land and record transactions in the blockchain. “Voting on proposals and infrastructure will take place based on how many blocks of land you own in this community,” Armstrong said. “I think crypto is really going to change the way people come together and create organizations in a very profound way.”
The adoption of cryptographic and blockchain technology could drive growth worldwide over the next decade, Armstrong and Wood said. The world will see a substantial share of the gross domestic product coming from the crypto economy in 10 to 20 years, like what we have seen with e-commerce, they both said. “People think they might miss the opportunity when they see Bitcoin at $ 70,000, but we’re very soon,” Wood said.
Still, in the short term, cryptocurrency investments are hurting. Bitcoin prices have fallen 20% so far and 40% below their peak in November 2021. It is currently trading at around $ 38,390.
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